Criticism Over No Increase in Sweden's Child Allowance

The Social Democrats' economic policy spokesperson Mikael Damberg (S) is deeply critical that the government does not raise the child allowance. It is a painful message for poor families with children and the families with children who are struggling with the economy.

» Published: September 08 2025 at 11:56

Criticism Over No Increase in Sweden's Child Allowance
Photo: Pontus Lundahl/TT

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Damberg says that the government has conducted a failed economic policy over the past three years.

It has been three very expensive years under this government for ordinary households. The fact that the government is acting now feels somewhat desperate ahead of the election.

No increased child allowance

He is critical of the government's announcement that there will be no increase in child allowance.

Sweden will be the only country in the Nordic region where the child allowance has not been increased during this cost crisis.

Under the leadership of the SD and The Moderate Party, the child allowance has been eroded and mutilated. The fact that in this enormous budget of 80 billion kronor, the child allowance is not increased, is a painful message for poor families with children and families who are struggling with the economy.

However, he welcomes the reduced preschool fee.

Damberg also talks about the fact that the tax reduction must be fair, but does not want to review at present whether the government's proposal for a new job tax deduction and reduced tax on pensions is fair.

We will review it when we see the tables and the content. But there has been a failed economic policy over these three years that has meant that Sweden's growth has not taken off.

Svenskt Näringsliv celebrates

Sven-Olov Daunfeldt, chief economist at Svenskt Näringsliv, welcomes the proposal for a job tax deduction and believes it is "exactly the injection that the Swedish economy needs".

"The largest expense for households is not food or housing - it's the tax on work. Therefore, a broad tax reduction that strengthens the incentives to work is very welcome", says Daunfeldt in a written comment.

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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