Fewer benefits for fewer families: 157,000 lose child allowance
The Greek government is moving forward with cross-checks of taxpayers’ identification numbers (AFM) in order to curb misuse of social benefits. The plan, presented as a measure of “fairness,” has sparked criticism as thousands of families are already being excluded from allowances due to technical and tax-related criteria.
Crackdown on “Illegal Beneficiaries”
The new National Register of Benefits and Allowances, according to Deputy Prime Minister Kostis Hatzidakis, will serve as a tool to map all state aid and ensure more “targeted social policy.”
However, concerns remain over the issue of illegal agricultural subsidies, previously exposed by the European Public Prosecutor’s Office, raising questions about the government’s true priorities when it comes to oversight.
Falling Incomes – Rising Exclusions
Despite government pledges, household incomes continue to shrink:
ELSTAT recorded a 1.8% drop in real disposable income in Q1 2025.
Eurostat reported a -0.8% fall for Greece, compared to growth across most of the EU.
Household savings in Greece remain the lowest in Europe at -3.8%, showing families are forced to spend their reserves.
Social Benefits: Less for Fewer
Data from OPEKA reveal a sharp reduction in beneficiaries:
Overall benefit recipients fell from 1.35 million in 2023 to 1.1 million in 2025.
157,000 families lost the child allowance within two years.
79,000 fewer households now receive housing benefits, even as rents surged by 16%.
Beneficiaries of the minimum guaranteed income dropped from 201,500 to 158,300, a fall of nearly 21%.
The decline is linked to the new taxation system for freelancers, which artificially inflates income through notional calculations, pushing many above eligibility thresholds.
Families with Children Hit Hardest
Families with children appear to be the most vulnerable group. While nominal income may have risen slightly, higher taxation and benefit cuts have left many in financial distress.
A Eurobank study shows that Greece has the second-highest tax burden on wage-earning couples with children among Southern European countries. As a result, families are effectively penalized twice—through higher taxes and reduced social benefits.
What to Expect at the Thessaloniki Fair (ΔΕΘ)
The government is expected to announce a relief package for the middle class at the Thessaloniki International Fair, including tax breaks for families with children. One option under discussion is adjusting the tax-free threshold based on the number of dependents.
Still, without revising the income criteria for benefits, experts warn that new tax relief may be offset by further cuts in allowances—leaving families no better off.
