Government Info: The government announces changes to popular family support schemes and discontinues price freezes

At today’s Government Info session, Gergely Gulyás, head of the Prime Minister's Office, announced the latest measures decided at Wednesday's government meeting, at which a review of the family support system and price freezes took place.

Minister Gulyás said that the government has decided on changes to the baby loan and the Family Homebuilding Allowance (CSOK) subsidy. The baby loan will increase to 11 million forints and will be available starting January 1, 2024, for those under 30 years old. It is also possible for women aged between 30 and 40 to apply if pregnancy is confirmed.

In the case of CSOK, the minister said changes were necessary, as while it was working as intended in smaller settlements, in big cities, a bank loan had to be taken out in addition to the subsidy due to higher home prices. For this reason, Gergely Gulyás announced that the government decided to increase the subsidies for smaller settlements, raising it to HUF 1 million for one child, HUF 4 million for two children, and HUF 15 million for three children. In the case of urban centers, the scheme will not be available from January 1, 2024. Instead, Minister Gulyás said the government is developing new forms of support for municipalities with more than 5,000 inhabitants to replace the previous measures.

Regarding changes in the current price caps, the minister announced that the food price freeze will end on August 1.

Minister Gulyás said that forecasts indicate it will be possible to achieve single-digit inflation before December, rendering the measure obsolete. Instead, the recently introduced mandatory discount scheme will be extended to products previously covered by the food price freeze; these products will now be subject to a 15 percent discount based on their gross purchase price.