Government Budget Benefits Families with Children Most

Families with children who live in houses will be the main winners in the government's budget. But everyone gets a part of the cake, according to Stefan Westerberg, private economist at Länsförsäkringar. They are investing a lot in strengthening households, he says.

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Government Budget Benefits Families with Children Most
Photo: Anders Humlebo/TT

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In the budget for next year, the government has invested, with investments of 80 billion kronor. Of that money, around 50 billion goes into households' pockets in various ways.

They are investing a lot of money in strengthening households' private economy this year. Everyone gets a part of the cake, says Stefan Westerberg.

They earn the most

According to him, families with children earn the most from the new budget.

For a family with two working adults and two children in preschool age, living in a villa, it will be almost 1,900 kronor extra per month. The example is based on the adults having a median salary of 38,800 kronor each and the house having an average electricity consumption.

They can take part in many investments. Lower food VAT, lower electricity tax, lower fees for preschool and leisure centers, and job tax deductions, says Westerberg.

The calculations are based on the fact that families with children generally also spend more money on food.

According to Stefan Westerberg, it seems that the government has wanted to invest the most in low- and middle-income earners. They get, for example, a larger job tax deduction in percentage terms.

But in kronor, it is still high-income earners who get the most at the end of the month, not least because the threshold for state income tax is adjusted upwards at the turn of the year.

In total, according to his calculations, a high-income earner gets 1,100 kronor more in their pocket every month, while a low-income earner gets 300 kronor.

For pensioners, it will be around 340 kronor more per month.

According to Westerberg, high-income earners are also favored by the fact that the tax-free amount on ISK accounts is increased to 300,000 kronor at the turn of the year.

Therefore, families with higher incomes will also be favored more than those with lower incomes, according to Westerberg, even if families in general earn more from the budget than single households.

Social benefits become an election issue

Those who are unemployed, on the other hand, are not affected to a greater extent by the budget, but rather by the changes that occur in the unemployment insurance in October.

Depending on how you live, you may be able to take advantage of the increased housing allowance, says Stefan Westerberg.

The parties have also announced that they want to introduce a cap on social benefits, which would mainly affect larger families with children.

But it will be introduced in 2027, so it will be more of an election issue than a pocket issue, says Westerberg.

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

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