Welfare Reform Sparks Controversy: Thousands of Families Face Benefit Cuts

The Czech Republic is set to implement a major overhaul of its social welfare system this October, with the introduction of a new “super-benefit” that will consolidate four existing welfare payments. While the government touts increased efficiency, critics warn of devastating impacts on vulnerable families.

Minister of Labor and Social Affairs Marian Jurečka acknowledges that beyond simplifying the system, the reform aims to reduce the number of benefit recipients. The change is expected to affect roughly 29% of the Czech population who are currently eligible for benefits, with projections showing this number dropping to 22% after implementation.

The reform’s most controversial aspect is its emphasis on employment. While working families may see increased support through a new work bonus, those unable to work face significant cuts. This includes disabled individuals and full-time caregivers. One such case is Lucie Ovsenáková, who cares for her ventilator-dependent husband and three children. She calculates her family will lose approximately 1,700 crowns from their current 4,410 crown monthly allowance.

The Ministry claims the reform will benefit one-third of recipients, while another third will see no change, and the final third will face reduced benefits. However, nonprofit organizations, including Charity CR and People in Need, argue that the changes could deepen poverty and social exclusion.

The new system will consider factors such as living costs, child care, and employment status, with benefits calculated based on a household’s income relative to the living wage. Housing support will continue for those spending over 30% of their income on accommodation.