Faroese child benefit proposal unlikely to boost birth rates

A planned one-time tax-free payment of 20,000 kronur (around €2,700) for new parents in the Faroe Islands will not significantly increase birth rates, according to politicians Sigrún Jónsveinsdóttir and Rósa Tyril, Kringvarp Føroya reports.

The two politicians, who represented the Social Democratic Party and the People’s Party in pre-election debates, argue that broader reforms to parental leave policies and higher ongoing child benefits would have a far greater impact.

The coalition agreement between the People’s Party, Union Party, and Social Democratic Party includes proposals to make parental leave more flexible, raise the maximum monthly child benefit to 60,000 kronur, and ensure parents do not lose income during maternity leave. The one-time childbirth payment is part of this package, but Jónsveinsdóttir and Tyril suggest its effect on birth rates will be limited.