Spain is pushing to include a new Universal Child Benefit (UCB) in the 2025 budget which will support children with a €200 monthly grant. This measure is only one of the many adopted in the EU aimed at supporting social security and combating child poverty. Examples from different countries prove not only the efficacy of this type of measure but also its cost-effectiveness.
Universal Child Benefits (UCB) vs quasi-Universal Child Benefits (qUCB)
Child benefits are one of the most widely used social protection programmes for children and provide direct financial relief for families in the form of cash or tax transfers and have been proven to drive down poverty rates and help children flourish (UNICEF, Universal child benefits, 2020). Child benefits can be divided into Universal Child Benefits (UCB) and quasi-Universal Child Benefits (qUCB) (UNICEF, 2020).
Universal Child Benefits (UCB):
Child or family allowances, paid on a regular basis as cash or tax, to the primary caregiver for all dependent children under the age of 18 years (in some circumstances benefits are paid to those above the age of 18 or stop when a child reaches 16 or 17). The benefits should be paid for a minimum of 10 years as this represents a significant portion of childhood.
Quasi-UCB:
- Short-term, age-limited: Benefits paid to all children for a limited period of the life course (e.g. to all children under the age of three).
- Means-tested that cover the large majority (with phase-outs): Benefits covering the vast majority of the child population, while ‘screening out’ high-income households.
Mixed-scheme: A combination of social insurance and non-contributory means-tested benefits to achieve universal or near-universal coverage of children.
Spain introduces a Universal Child Benefit from 2025
Key cabinet ministers of social rights, labour and children in Spain are pushing to include a new Universal Child Benefit (UCB) in the 2025 budget. The benefit would consist of a €200 monthly grant per child based on two eligibility criteria: households must file taxes as residents of Spain and children must be below the age of 18 (El Cronista, 2025). Moreover, high-earning households would be subject to a tax on the grant (Raj, 2025).
This economic measure will complement the monthly child aid supplement (Complemento de Ayuda para la Infancia – CAPI) which consists of a money grant between €57 and €115 to low-income families meeting the qualifying criteria for Minimum Vital Income (Ingreso Mínimo Vital – IMV). The choice to introduce a UCB in addition to CAPI was given to the fact that more than half the people eligible for IMV have not accessed it and the same happens for the CAPI. Hence, the UCB aims to reach all the families and to limit the risk of non-take-up (Raj, 2025).
The implementation of the Universal Child Benefit is part of the National Strategy to Prevent and Combat Poverty and Social Exclusion 2024-2030 (Estrategia Nacional de Prevención y Lucha contra la Pobreza y la Exclusión Social 2024-2030), recently presented by the Minister for Social Rights, Consumption and Agenda 2030, Pablo Bustinduy Amador. This strategy aims to reduce the percentage of the population at risk of poverty and social exclusion, which currently stands at 26.5 percent, 5 points above the European average (El Cronista, 2025).
In terms of impact, a simulation by academic specialists shows that a universal benefit of this kind in Spain could not only reduce child poverty generally but also almost halve the current rate of extreme child poverty from 14 to 8 percent. Spain’s child poverty commissioner has quantified the yearly cost of chronic, persistent child poverty at €63.1 billion.
By contrast, the projected annual cost of a universal child benefit is €19 billion. Moreover, the child benefit could still be accompanied by other universal programs or targeted support such as the CAPI or urgent assistance such as spending cards for households that cannot pay for adequate food (Raj, 2025).
Comparing different models of social protection systems across EU countries
Universal Child Benefits are a core element of social protection systems in countries, though the design and delivery of the programmes differ. Eligibility for UCBs varies depending on age, residence or citizenship criteria. Payments can be delivered through different modalities, such as cash payments or the personal income tax system either as tax credits or tax allowances. Here are some examples of the two different types of benefits (UNICEF, Europe and Central Asia, 2020).
Universal Child Benefits (UCB)
- Familienbeihilfe in Austria is paid to all resident children until the age of 18, it can be extended under some conditions. The average payment is €105/child/month.
- In Romania the universal child allowance benefits children younger than 18. The benefit amount varies by age, with 200 lei ($47) a month for each child under the age of 3 and 84 lei ($20) per month for each child aged 3 to 18.
- Hungary’s Családi Pótlék pays monthly benefits for children under the age of 18:12,200 forints ($43) is paid for the first child, 13,300 forints ($45) per child for two children and 16,000 forints ($54) per child for three or more children. A higher benefit level is paid to single parents.
- Latvia’s Gimenes Valsts Pabalsts pays a monthly benefit to all children between the ages of 1 and 15 years. The benefit level varies depending on the number of children: €11 for one child; €23 for two children; €34 for three children; and €50 for four or more children. An additional child-raising allowance is paid for children younger than age 2.
Quasi-UCB (qUCB)
qUBC age-limited
- Ukraine’s Universal Childbirth Grant is paid to all permanent residents. The birth grant is equal to 41,280 UAH which is split between a one-time payment of 10,320 UAH ($433) paid at birth (or adoption), with the remainder paid in monthly instalments of 860 UAH ($36) until the child reaches 3 years old.
- The Belarus Child Allowance is available for all children under the age of 3. The benefit level is set at a proportion of the national average wage: 35 percent for the first child and 40 percent for subsequent children.
qUCB with phase-outs
- Denmark’s child and youth benefit (or child cheque) is paid for each child until they reach the age of 18. The amount a family receives depends on the age of the children and the family income. Once a family’s income exceeds a certain level (DKK 850,652 in 2019), the benefit is reduced by 2 percent of the amount by which the family’s income exceeds the threshold. For example, if a household has an income of DKK 100,000 over the threshold, the benefit is reduced by DKK 2,000, or if a family’s income is three times the average wage the benefit would be phased out entirely.
- The United Kingdom provides a universal Child Benefit (maximum £82/month/child). Still, it is taxable for high-income families who may opt out rather than receive benefits and pay taxes on it.
Mixed-schemes
- Belgium’s mix of contributory (employment-related and civil servant benefits) and non-contributory schemes are paid to families with children under the age of 18.
- Moldova’s childcare benefit provides support to parents of young children through a mix of contributory and non-contributory measures. For contributing parents, the benefit lasts until the child reaches the age of three and the amount is 30 percent of the salary. Parents outside of the contributory systems receive the benefit until the child is 2 years old and the amount is fixed.
Four reasons to invest in UCBs
- To reduce poverty and inequalities – Social protection helps reduce poverty and improve income security, benefiting children’s health, education, and overall well-being. However, significant gaps in coverage often leave children excluded, particularly due to age, gender, disability, and geography (ILO, 2024).
- To implement children’s rights – Adequate financial support for children is a fundamental right. Yet, 1.4 billion children worldwide lack social protection, increasing their risk of poverty and lifelong negative consequences (ILO, 2024).
- To generate positive incomes -UCBs can provide comprehensive social protection for children, with the potential to lift families out of poverty. However, gaps in public investment and coverage can limit the effectiveness of these programs (ILO, 2024).
- To invest in a more cost-efficient way – A UCB scheme costing just 1% of GDP can reduce poverty by up to 20%, with a significant impact on child poverty. In addition, UCBs have been shown to decrease income inequality in middle- and high-income countries (ILO, 2024).
Building a comprehensive strategy for universal child benefits
Universal child benefits are the foundational policy for child development and represent an investment that delivers multiple socio-economic dividends. As mentioned in the case of Spain, UCB can complement other types of social protection measures and the shift towards a universal measure can be done one step at a time. Countries can progressively realize their UCB and introduce an age-limited (e.g. 0-2 years) or affluence-tested UCB and build gradually towards a full UCB (ILO, 2024).
Moreover, it is important to underline how social protection systems are linked with broader social services and decent work policies. Adequate social protection across the life cycle, together with decent work for parents and other caregivers is critical for the well-being of children. This also means extending social protection to workers in the informal economy and ensuring adequate social protection for workers in all types of employment (ILO, 2024).
Finally, policies and investments in the field of social protection should be designed with a long-term perspective, independently form political mandates. Assessing the impact of measures such as the UCB takes time, and it is impossible to assess their efficacy if the measure is put in place and then taken off after a short period. Hence, it is important to build a solid and broad political consensus when planning and implementing policies which could significantly affect children’s lives.
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Written by Arianna Braga
References:
El Cronista (2025). El Gobierno quiere darle dinero a todas las familias que tengan hijos, sin importar cuanto ganen. Retrieved from El Cronista at https://www.cronista.com/espana/economia-finanzas/el-gobierno-quiere-darle-dinero-a-todas-las-familias-que-tengan-hijos-sin-importar-cuanto-ganen/, accessed on 11 February 2025.
ILO (2024). Social Protection Spotlight – ILO brief. Retrieved from Social Protection Platform at https://www.social-protection.org/gimi/Media.action?id=19447, accessed on 9 February 2025.
Raj, K. (2025). Spain’s Universal Child Benefit Could Transform Lives. Retrieved from Human Rights Watch (HRW) at https://www.hrw.org/news/2025/02/06/spains-universal-child-benefit-could-transform-lives, accessed on 9 February 2025.
UNICEF, Europe and Central Asia (2020). Universal Child Benefits in Europe and Central Asia. Retrieved from UNICEF at https://www.unicef.org/eca/reports/universal-child-benefits-europe-and-central-asia, accessed on 9 February 2025.
UNICEF, Universal child benefits (2020). Universal child benefits – Policy issues and options. Retrieved from UNIECF at https://www.unicef.org/reports/universal-child-benefits-2020, accessed on 9 February 2025.
Your Europe (n.d.). Family benefits. Retrieved from Your Europe at https://europa.eu/youreurope/citizens/work/social-security-and-benefits/family-benefits/index_en.htm, accessed on 9 February 2025.
