Russia expands family support with new monthly child payments and related welfare measures

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On Thursday, March 31, Russian President Vladimir Putin signed a decree to provide monthly cash payments to families with children aged eight to seventeen. The decree appears in the official legal information portal, confirming the measure as a formal policy step.

The document explains that the new monthly payment, beginning April 1, 2022, targets permanent residents of the Russian Federation who qualify for social support. It states that the payment will be issued under terms established by regional authorities in line with the legislation of each constituent entity of the federation, highlighting the regional approach to distribution.

Eligibility hinges on household income. Payments are reserved for families where the average per capita income falls at or below the regional subsistence level. The amount is set at half of the regional subsistence minimum for children, with the document noting that if a family’s income is already at or below subsistence, the payment amount may be increased to ensure a meaningful level of support.

Disbursements are calculated starting April 1 and will begin accruing on May 1. The decree indicates that the actual payment could amount to 50 percent, 75 percent, or 100 percent of the regional subsistence minimum for children, depending on specific circumstances addressed by the regions.

What benefits are currently available for families with children?

The decree introduces another set of measures designed to support families in Russia. Families with income up to two living wages can apply for a monthly allowance for children up to age three. The first child’s allowance is financed from the federal budget, while the second child’s allowance comes from the capital program.

For children aged three to seven who fail to meet the average subsistence threshold per capita, the state offers assistance at rates of 50 percent, 75 percent, or even 100 percent of the regional minimum subsistence level. The Ministry of Labour underscored that these payments can be claimed for each child in the family.

In addition, pregnant women whose income does not exceed the subsistence level may receive an allowance equal to 50 percent of the regional subsistence minimum. The policy adds to a broader toolkit of government support for family welfare, aiming to reduce the financial pressure on households with children.

Reports note that targeted funds previously considered as part of business grants, tax reliefs, and government programs for property purchase were reevaluated in a comprehensive assessment of public support measures.

Trends in Russian household spending

Recent research by Romir indicates a notable rise in expenditures on food and medicines among Russian households. At the same time, spending on entertainment, dining out, small appliances, and clothing declined more than usual. There was also a perceptible drop in spending on alcohol, including beer, while expenditures on personal care products, other non-food items, and pet care rose.

Analysts describe the spending shifts as reflective of consumer priorities amid shifting economic conditions. The patterns show what households are willing to allocate resources to during uncertain times, and they also illustrate which expenses are being trimmed first. If economic conditions improve, analysts expect some of the reduced categories to regain prominence in household budgets, underscoring the dynamic nature of consumer behavior in response to policy changes and economic signals.

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