Faroe Islands parliament rejects proposal to raise family allowance

The Faroese parliament has rejected a proposal to increase family allowance for low-income households, KVF reported on Thursday.

The proposal from the opposition parties Tjóðveldi and Sjálvstýri was defeated by 16 votes to six.

The parties wanted to provide additional support in 2026 to financially strained households affected by rising energy prices. Their proposal would have increased the energy allowance from 5,000 Danish kroner to 12,000 kroner and raised the income threshold for eligibility to 350,000 kroner.

The majority on the parliament’s Social Affairs Committee argued that the existing family allowance system was not the right solution.

The coalition government said it was monitoring the situation. If oil prices rise again and the situation becomes long-lasting, the government will decide this autumn whether to provide assistance to people facing financial difficulties.