Estonia's Reform Party pushes higher benefits for young first-time parents
A proposal to increase benefits for first-time parents under 28 has gained support from the Reform Party in Estonia. The plan aims to ease financial pressures on young families and reverse declining birth rates. However, its future depends on coalition backing, as opposition from Eesti 200 has already emerged. The idea came from MP Signe Riisalo's Social Affairs Committee, which suggested raising parental benefits by around 10 percent. This adjustment would target roughly 4,000 new parents and cost the state about €4 million. The Reform Party argues that higher payments could offset early-career income losses, making parenthood more feasible for younger Estonians.
Estonia's fertility rate has hit a record low, dropping to 1.18 in recent years. Births fell to just 9,092 in 2025—a 42 percent decline since 2010. Economic uncertainty and fears of reduced earnings have led many to delay having children, mirroring trends across Europe.
Traditionally, Estonian family policies have focused on supporting second or third children. If the proposal fails to advance, the Reform Party plans to include it in their Riigikogu election campaign next year.
Eesti 200 has dismissed the initiative, claiming financial incentives alone won't boost birth rates. Their opposition adds a hurdle to the measure's implementation. The proposal's success now hinges on coalition negotiations. If approved, it would mark a shift in Estonia's family policy by prioritising first-time parents. Without support, the plan will instead become part of the Reform Party's election promises for 2026.
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