Svetlana Bessarab, a member of the State Duma Committee on Labor, Social Policy and Veterans Affairs, recently urged lawmakers to raise the mortgage repayment subsidy available to large families. The current subsidy stands at 450 thousand rubles, a figure reported by lenta.ru, and it aims to help families shoulder the burden of home loans when their household size is larger than average. The proposal reflects ongoing concerns about how housing costs affect larger families and whether current government support remains adequate as needs grow.
In Russia, large families can access a combination of benefits that includes maternity capital, a long-standing program designed to support childbearing and childrearing. In addition to maternity capital, families can receive a subsidy that covers a significant portion of their mortgage debt, easing monthly payments and reducing overall interest exposure. The maternal family capital itself is periodically indexed to keep up with inflation and living costs. Starting February 1, 2024, the capital was increased by 7.5%, bringing the value for the first child to about 631 thousand rubles and approaching 834 thousand rubles for the second child, provided the first child’s capital has already been issued. This indexing ensures that the capital remains meaningful in the face of rising prices for goods and services, including housing and essentials, though the exact figures depend on the number and order of children within the family. These adjustments illustrate how the public policy landscape evolves to maintain the purchasing power of family support programs and to reflect economic realities faced by households across the country.
Bessarab argues that the mortgage subsidy itself should be indexed as well, noting that this reform has persisted for a long period and that citizens anticipate adjustments to keep pace with the growing cost of housing. Her position rests on the belief that as the price per square meter climbs in many regions, the real value of the subsidy can weaken if it does not receive updates in step with market conditions. By indexing the subsidy, the government would help ensure that the program continues to deliver meaningful relief to families choosing to expand their households or maintain homeownership under rising financial pressures. This kind of policy tweak is seen as a practical measure to preserve the intended social outcomes of the program, especially for those who are balancing multiple children with mortgage obligations and a need for stable, affordable housing options.
Separately, the deputy commented on a bill proposing additional state funds to be directed toward families with children so they can further repay their mortgages. She acknowledged that public support in the form of subsidies is beneficial and reduces immediate financial stress. Yet she also pointed out that such provisions may not automatically incentivize larger families. She emphasized that there are many other dimensions to family well-being, including access to cultural and educational opportunities, and the importance of ensuring that children can pursue higher education under fair conditions. The underlying message is that housing support is valuable, but it should be part of a broader, holistic approach to family policy that recognizes the multiple determinants of family stability and future prospects for children in Russia.
During a year-end press conference, President Vladimir Putin addressed the government’s plans, noting the intention to extend the family mortgage program beyond its current expiration date of July 1, 2024. He cautioned that any extension would depend on available budgetary resources, highlighting the ongoing negotiation between policy ambitions and fiscal realities. The president’s remarks underscored the administration’s interest in maintaining continuity for families relying on the program, while also signaling a careful assessment of spending priorities in light of economic conditions and budget constraints. This stance aligns with a broader governmental pattern of balancing social commitments with fiscal prudence as housing demand remains robust and prices continue to climb in several regions.
Earlier, the Ministry of Construction had already observed a surge in demand for housing within Russia, noting the market’s rapid pace. The department’s assessment suggested that the combination of subsidies, capital payments, and other support measures has helped sustain interest in home ownership even as affordability pressures intensify. The ministry’s position also implies that policy makers are closely monitoring how these incentives interact with market dynamics, income levels, and regional disparities in housing costs. The overarching concern is to ensure that the public programs tied to family housing remain effective and adaptable, supporting families while avoiding unintended distortions in the housing market.