Late on Thursday evening, the SVM government finally reached an agreement on how to distribute 300 million kroner to families with children as part of the inflation aid package. The agreement was reached between the government and the SF parties, the Radical Party and the Alternative Party. The right-wing parties, the Denmark Democrats, the Danish People's Party and the New Bourgeois Party, withdrew an hour before the agreement was announced because of their objection to including families of non-Western immigrant origin in the distribution of funds. The aforementioned parties wanted to exclude non-Western immigrant families from receiving inflation aid allocated to families with children.
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In total, the agreement covers approximately 65,100 children from about 40,500 families belonging to one of the categories mentioned in the text of the agreement below:
- Inflation aid is an exceptional tax-free payment made once in two installments to all families with children in the cash assistance scheme (kontanthjælp) and families with children where at least one parent is on the ressourceforløb or jobafklaringsforløb scheme and receives ressourceforløbsydelse.
- Inflation benefits are based on the number of children and are gradually reduced for each child, so that families with one child receive 7,500 Danish kroner.
- Families with two children receive 3750 Danish kroner for the second child.
- Families with three children receive 2250 Danish kroner for the third child.
- The money will be paid in two installments without being deducted from other public benefits.
- The first half of the amount will be paid no later than June 2023.
- The second half will be paid in early August 2023.
Source: Ministry of Labor
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