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Family benefits play a key role in fighting poverty and promoting social inclusion. They help support households and are especially important in preventing child poverty.

Across Europe, social security systems and family benefits vary hugely. One way to compare them is by looking at how much each country spends per person.

In 2022, EU countries spent an average of €830 per person on family benefits. That’s a 47% rise from €566 in 2012.

But how do these benefits compare across Europe? Which countries spend the most to support families? 

In the EU, expenditure on family benefits per person in 2022 ranged from €211 in Bulgaria to €3,789 in Luxembourg according to Eurostat. When EU candidates and European Free Trade Association (EFTA) countries are included, Albania offered the lowest benefits per person at just €48, closely followed by Turkey (€57) and Bosnia and Herzegovina (€59).

North-West vs South-East divide in family benefits

In general, family benefits per person are highest in Northern and Western Europe, and lowest in the South and East.

After Luxembourg, Nordic countries top the list: Norway (€2,277), Denmark (€1,878), Iceland (€1,874), Sweden (€1,449), and Finland (€1,440).

“Nordic countries and France remain among the highest overall spenders on family benefits, although their approach relies more on in-kind services such as childcare, which are not fully captured by per capita cash benefit measures,” Dr Anne Daguerre from University of Bristol told Euronews Business.

Germany (€1,616), Switzerland (€1,375), Austria (€1,340), and Ireland (€1,026) also spend over €1,000 per person. Belgium (€976) and France (€867) rank above the EU average, but don’t reach the €1,000 mark.

The Netherlands offered €670 per person in family benefits. This is €160 below the EU average. Italy (€524) and Spain (€427), both part of the EU’s ‘Big Four’ economies, fell short. 

EU candidate countries offer the lowest levels of family benefits. Montenegro (€131) and Serbia (€117) follow Albania, Turkey, and Bosnia and Herzegovina, which are among the bottom three.

Prof. Grega Strban from the University of Ljubljana expressed caution when comparing countries: “The question is whether all the countries classify all benefits in the same manner.”

He emphasised that there are many policy considerations behind them. “Some focus on the support for parents (or guardians of a child), others on children (and students) themselves. Some are universal, some targeted. Some are linked to disability or social assistance,” he added. 

How have family benefits changed over the past 10 years?

Among 32 countries, family benefits per person decreased in only two nations in euro terms, while increases varied significantly over the past 10 years. In the EU, the average rose from €566 in 2012 to €830 in 2022. This a 47% increase, or €264. 

It declined by 5% (or -€130) in Norway and 18% (or -€62) in Cyprus. Part of this change may be due to exchange rate fluctuations.

In percentage terms, Poland reported an unprecedented increase of 320%, followed by Latvia (245%), Romania (227%), and Lithuania (198%).

Family benefits per person also more than doubled in Estonia (125%), Serbia (115%), Bulgaria (112%), Iceland (110%), and Croatia (101%).

The increase was below 30% in Luxembourg, Austria, Finland, Hungary, France, Sweden, Denmark, and Ireland. Most of these countries already offered higher benefits with the exception of Hungary.

In euro terms, the largest increases were recorded in Iceland (€980), Luxembourg (€819), and Germany (€558).

Drivers of change in family benefits

“Family benefit spending per person has increased markedly across the EU since 2012, but the drivers of this growth differ sharply between countries,” Dr Daguerre told Euronews Business. 

She noted that the most striking increases are in Central and Eastern European (CEE) countries, particularly Hungary and Poland: “In these cases, the growth is largely driven by selective pronatalist policies aimed at boosting fertility rates and supporting traditional family models. These cash-heavy strategies reflect a broader shift toward more socially conservative welfare agendas.” 

She also added that Italy under Prime Minister Giorgia Meloni has been following a similar path since 2022. 

Growth in family benefits can also reflect different priorities. “Lithuania, for instance, has also seen significant increases, but through the introduction of a universal child benefit in 2018. This reform was primarily designed to reduce child poverty and ensure more inclusive access to support, especially for low-income families who had previously been excluded from tax-based systems,” she explained. 

Dr Anne Daguerre pointed out that some Southern European countries like Greece and Cyprus show stagnation or only modest increases in spending, despite persistently low fertility rates. 

What are family benefits?

Family benefits are “all benefits in kind or in cash intended to meet family expenses under the social security legislation of a Member State” according to the European Commission. 

Family benefits include parental and child-raising allowances that help cover the costs of raising a child and compensate for lost income when a parent stops working. Childcare allowances for working parents also fall under family benefits.

The chart above shows the impact of family tax allowances: One-earner couples with two dependent children have significantly higher take-home pay relative to their gross salaries. Euronews article titled ‘Net vs gross salaries in Europe:  How much are employees really taking home?’ analyses in more detail the role of family allowances on personal finances across Europe.