Poor economy hinders young people from having children

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Poor economy hinders young people from having children
Photo: Jessica Gow/TT

- Families with children, especially single parents with children, have had a worse economic development than households without children. It is something for society to think about, says Minister of Social Affairs Jakob Forssmed (KD).

He comments on what is said in a report about the role of finances in childbearing. The report was made for the government's investigation into how to reverse the trend and get more people to want to have children.

Increased child benefit?

Child benefit was last increased eight years ago, in 2018, by SEK 200 to SEK 1,250 per month, per child. But child benefit and some other family policy benefits are only written up in line with prices, not wage growth. This means that they are constantly decreasing in value. And tax policy has primarily benefited those who have jobs and/or wealth.

When asked whether child benefit should be increased, Forssmed replies that he is not drawing any immediate conclusion.

- But in the future, there are reasons to review family policy support so that it is not continuously cut.

He adds that the government is increasing the housing allowance and lowering the fee for childcare.

Children are expensive and it can also be financially attractive to become a single parent with children, for example in the event of a separation. This can contribute to young women hesitating or giving up on having children, according to the report.

Slipped behind

Single people with children, mainly young women, have lagged significantly behind other groups in society in terms of income growth since 1980. Their income has increased much more slowly than, for example, single people without children.

In 2024, young single people with children in the 20-29 age group had seen an income increase of 11 percent since 1980. For people aged 20-64, the average was a 93 percent increase over the same period.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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