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Several social benefit rates to increase starting next year

Several social benefit rates to increase starting next year

The Tallinn City Government has decided to increase several social benefit rates from January 1, 2024. In response to the rising cost of living, the city is raising the income threshold to 360 euros and the financial support for the beginning of the academic year from the second grade to 100 euros. Additionally, benefits for children with disabilities and pension supplements will also see an increase.

Income-dependent support, which can be sought for health maintenance, emergency situations, or to support a child's extracurricular activities, currently has a threshold of 300 euros. This threshold, which is the amount remaining for living expenses after housing and other justified costs, will be raised to 360 euros per person from January 2024.

Deputy Mayor Betina Beškina explains, "By raising the income threshold, we aim to ensure that underprivileged individuals can access necessary aid and maintain their standard of living. From January 1, the income threshold will be increased to 360 euros. This change will allow a greater number of individuals to receive support. Adults can receive up to 250 euros and children up to 350 euros annually if eligible."

With the start of the school year significantly impacting family budgets, students up to 19 years old can receive support from the city. This school year, support has been distributed to approximately 47,000 students, totaling 4.6 million euros, including 1.4 million euros for over 4300 first graders and 3.2 million euros for 42,700 students from second grade onwards.

"The financial support for the beginning of the academic year for first graders will remain at 320 euros next year, but from the second grade, the support will increase from the current 75 euros to 100 euros, benefiting all students in primary, secondary, or vocational education. This increase will significantly aid families, especially those with multiple school-aged children," says Beškina.

In the following year, the benefit for children with disabilities, paid annually in the month of the child's birth, will also rise from the current 125 euros to 150 euros.

To compensate for rising costs, Tallinn will increase its annual pension supplement from 175 euros to 200 euros from January 1. The supplement will be paid in the month preceding the recipient's birth month, starting the calendar year following retirement. It is available to those receiving disability or national pensions, or to those over 17 with partial or full disability as determined by the Work Ability Allowance Act.

The 2024 city budget allocates 5.8 million euros for the beginning of the academic year financial aid, 1.2 million euros more than this year. The budget for children with disabilities support is set at 285,000 euros, a 20 percent increase. The pension supplement allocation is planned at 18.3 million euros, nearly 2.3 million euros more than this year.