Report on the effectiveness of child benefits in the EU

This study provides a comparative overview of child benefit policies across the 27 Member States of the European Union (EU), focusing on their design, effectiveness and efficiency in reducing child poverty and promoting social inclusion. Drawing on desk research conducted by national experts, the report maps the diverse landscape of in-cash and in-kind child benefits, highlighting variations in adequacy, targeting and policy characteristics. Microsimulation analysis is used to estimate the impact of current policies and potential policy reforms on child poverty, inequality and material deprivation, as well as on female/maternal employment. A literature review, meta-analysis and two in depth case studies (Ireland (IE) and Sweden (SE)), also examine broader social and economic returns to investing in child benefits. Findings from this study show that in-cash child benefits play a critical role in reducing child poverty and material deprivation, lowering the child at-risk-of poverty (AROP) rate by an average of 10.6 percentage points (pp) across the EU-27. The largest reduction is observed in Austria (AT) (16.6 pp), and the smallest in Spain (ES) (4.6 pp). The study also finds that child benefits are associated with long-term gains for children, families and economies. A meta analysis of international studies on in-kind child benefit interventions reveals that, on average, each euro invested yields over five euros in return (pooled benefit-cost ratio (BCR) = 5.26), with education-focused interventions delivering the highest returns (pooled BCR = 6.86). The study confirms that, if well designed, child benefits are efficient and impactful tools for reducing child poverty and fostering social inclusion across the EU.