Social Democrats Propose Child Allowance Increase and End Qualifying Day

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Social Democrats Propose Child Allowance Increase and End Qualifying Day
Photo: Christine Olsson/TT

The Social Democratic Party proposes an increase of both child and study allowance by 200 kronor per month. They also want to increase housing allowance for families with children and abolish the deduction day.

The proposals come in the party's so-called shadow budget for 2026, which will be presented in its entirety on Monday.

We also want to lower taxes for ordinary people, but not for high-income earners, says S leader Magdalena Andersson at a press conference.

An ordinary family with children will get almost 5,000 kronor more per year with our policy compared to the government's, she adds.

Costs over six billion

The increase in child and study allowances would, according to S, cost 5.5 billion kronor in 2026. The increase in housing allowance - to the same level as applied with the abolished supplementary allowance - is estimated to cost 664 million kronor.

LO's chairman Johan Lindholm also participates in the press conference. He welcomes in particular the abolished qualifying day, which S wants to introduce from July 2026 in combination with a high-cost protection for small businesses.

This is, of course, really good policy, we think, for all of Sweden's workers, he says.

Svenskt Näringsliv critical

Lindholm describes the qualifying day as a class issue, as workers, unlike many salaried employees, normally cannot work from home when sick.

He gets, not unexpectedly, a rebuke from Svenskt Näringsliv, which describes the qualifying day as "the deductible in sickness insurance":

"We know from previous experiences that abolished qualifying deduction increases sickness rates dramatically and leads to significantly increased costs for businesses. The price of such a reform is lower growth and worse welfare for all", says Sven-Olov Daunfeldt, chief economist at Svenskt Näringsliv in an email comment to TT.

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

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