Italy heading for demographic ‘crisis’ as population set to shrink by a fifth

Italy heading for demographic ‘crisis’ as population set to shrink by a fifth

Italy has long counted among one of the lowest birth rates in Europe, and the situation has only been made worse by the coronavirus crisis.

In reaction to continuously falling birth rates, the Italian government vowed to support women and couples to have a family, including the introduction of a universal single allowance.

The authorities gave the green light to the measure earlier this month, providing a monthly benefit to those who have children, from the seventh month of pregnancy until the child reaches the age of 21.

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What a family receives is based on household income, according to the socio-economic indicator the government uses to calculate benefits, known as ISEE.

Approved by Italy’s government cabinet, the Council of Ministers, the single and universal child allowance (L’assegno unico e universale) varies depending on the ISEE and the age of the children, except for disabled children for whom there is no age limit.

It ranges from €175 to €50 per month for each child under 18, while from 18 to 21 years old, the contribution is on a scale from €85 to €25.

The allowance unifies and replaces a series of measures to support families – hence the term ‘unico‘. It’s also called ‘universal’ because it is granted to all families with dependent children resident in Italy.

Families can begin applying for the new benefit from January 1st 2022, although there is currently a temporary ‘bridge allowance’ in place to cover groups of families that have so far been excluded from government family help.

Introduced in July, families can submit an application under the current interim rules for financial assistance until December 31st.

The universal single allowance forms part of the country’s wider strategy, its so-called Family Act, which is intended to help make starting a family in the country a more affordable and realistic prospect.

The benefit can be accessed by anyone who pays taxes in Italy and has been resident in the country for at least two years.

Italian and EU citizens and holders of residence permits for work or research purposes for at least six months are eligible.