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KEY POINTS: What is Italy’s government doing to help families?

As new statistics show the birth rate continues to fall in Italy, what additional support has been introduced for families in 2024 - and how much difference will it make?

KEY POINTS: What is Italy’s government doing to help families?
Italy has increased funding towards childcare for some families under the 2024 budget. (Photo by LOIC VENANCE / AFP)

Italian Prime Minister Giorgia Meloni presents herself as a “Christian mother” defending traditional family values. But after a year and a half in power, what concrete financial measures has her government taken to support families in Italy?

The 2024 budget approved at the end of December was the Meloni administration’s first real opportunity to follow through with its pledges of support for families.

Amid the cost of living crisis, more financial support for working parents in particular was something many voters were hoping to see.

While the government did allocate more funds to policies supporting families this year, the final draft of the budget turned out to be a mixed bag.

Main budget changes affecting families in 2024:

  • The 2024 budget slightly increased the minimum amounts payable under the universal allowance (assegno unico e universale, a single, monthly means-tested payment that increases with each child.) See more details here.
  • For 2024 only, it also extended a deduction of pension contributions for women who have at least three children to mothers of two children, up until the month that their youngest child turns ten.
  • The maximum amount claimable towards nursery fees under the bonus asilo nido, or ‘nursery school bonus’, was increased for families with two children, one of whom must be born after the start of 2024.
  • A second month of parental leave in 2024 can be taken at 80 percent of the parent’s usual income, instead of the former 30 percent; this will drop to 60 percent in 2025.
  • VAT increased from 5 percent to 10 percent on formula milk and baby food, and from 5 percent to 22 percent on nappies and child car seats.

See a full breakdown of the maternity benefits available in Italy in 2024 and how to apply for them here.

The steep hike in VAT applied to nappies and baby formula has unsurprisingly been controversial, while some of the other measures fell short of what was initially reported based on earlier drafts of the budget law.

With most of the funding allocated to measures aimed at supporting larger families, media reports noted that it was hard to see how the government intended to encourage more young Italians to consider starting a family in the first place.

READ ALSO: The real reasons young Italians aren’t having kids

This has been a hot-button topic in Italian politics for years as the birth rate continues its steady descent. The latest figures from national statistics bureau Istat showed last week that the birth rate was near the lowest on record in 2023, with the number of births per Italian woman dropping further to 1.20, down from 1.24 in 2022. 

Against this backdrop, successive governments over the years have promised to make starting a family more financially viable for young Italians. But while there have been improvements – Italy had no form of child benefit at all until 2020, for instance – the support available to new parents is often deemed inadequate.

While surveys show that a large proportion of young Italian adults would like to start a family, they don’t see it as realistic: the rising cost of living, low and stagnant wages, and widespread workplace discrimination during pregnancy have long been cited as just some of the reasons why people put off having children or have fewer than they would like.

Economists say Italy’s shrinking population – on course to fall by one fifth by 2050 – will soon mean the country must implement either huge tax increases or severe pension cuts.

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ECONOMY

Two-thirds of young Italians now living with parents as unemployment rises

The number of people aged 18-34 still living at home is now as high as 75 percent in some parts of Italy, new official data shows, as wages shrink and youth unemployment grows.

Two-thirds of young Italians now living with parents as unemployment rises

The stereotype of the Italian ‘mammone‘, who lives with mamma until well into his 30s or beyond, is alive and well as the number of young people living at home has risen again according to the latest annual economic report by national statistics bureau Istat, published on Wednesday.

In 2022, some 67.4 percent of all 18-34 year-olds in Italy were living with at least one parent, an increase of almost eight points in twenty years – the rate in 2002 was 59.7 percent.

The number was as high as 75 percent in the southern regions of Campania and Puglia, Istat found.

The phenomenon remained, as ever, more prevalent in young men, with 74 percent of them compared to 66 percent of women in the same age group living at home.

“Today’s young people have increasingly protracted transitions into adulthood,” read the report.

The phenomenon is not unique to Italy, with the most recent Eurostat data, from 2021, showing a similar trend among the 16-29 age group in Italy as well as other southern European countries including Croatia, Greece, and Portugal.

While cultural factors are often suggested as a potential cause, with Italians known for close family ties, Italy’s economic situation appears to play a far larger role in keeping young people living at home for longer.

Istat’s report pointed to a high prevalence of insecure employment among younger Italians, as well as shrinking wages and decreased spending power.

“Permanent employment, which between 2004 and 2023 grew by +9.7 percent, has increased only among the employed over the age of fifty,” Istat noted, partly attributing this to a squeeze on pensions in recent years which means many are retiring later.

READ ALSO:

Italy meanwhile has one of the EU’s highest rates of youth unemployment, which had risen further to 22 percent as of February 2024, according to Eurostat data.

Italian workers of all ages were getting poorer, Istat found, and the number of working people in poverty had risen to 14 percent.

“Despite the improvements observed in the labour market in recent years,” the report said, “Italy retains a very high share of employed people in economically vulnerable conditions.

“Between 2013 and 2023, the purchasing power of gross wages in Italy decreased by 4.5 percent, while in the other major economies of the EU27 it grew at rates between 1.1 percent in France and 5.7 percent in Germany.”

Within this context, the Istat report noted that young Italians were also getting married five years later than in 2002, with men now waiting until an average age of 36.5 before tying the knot, and women 33.6.

KEY POINTS: What is Italy’s government doing to help families?

The age at which women have their first child had also risen, to 31.6 years against 29.7 in 2002.

Italy’s birth rate in 2023 fell to a record low of 379,000 after 15 years of decline, Istat reported in January.

“The substantial decline in births of recent years has deep roots, and is due to the parenting choices (fewer children and increasingly later) of Italian couples today and those of yesterday,” Istat’s latest report found, reporting that lower birth rates 30 years ago also contributed.

Italy’s plunging birth rate and ageing population has been a hot-button topic for the current government, which said this month that it aims to launch a Vatican-backed campaign to increase births to 500,000 per year by 2033.

Italy’s birth rate had previously been boosted by a higher number of births among foreign nationals in Italy, however the number of babies born to non-Italian mothers had also dropped, Istat said, bringing it in line with the trend among the Italian population.

The shift was attributed to various factors, including the challenges immigrants face and the high employment rates among foreign women, many of whom are employed in demanding but low-paid full-time jobs.

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