The single allowance is advantageous for almost eight out of 10 families. The new subsidy guarantees approximately 77% of beneficiaries "an increase in transfers which amounts on average to around 672 euros". writes it theParliamentary Budget Office in a study entitled "The single cheque: distributive effects and interaction with the Irpef reform".
Single allowance: which employees have the most advantage
Compared to the old family allowances – explains the Upb – the single allowance reduces more slowly as income grows; therefore, the most advantaged employees are those with Isee higher than 12.000 euros.
The reform rewards large families
Furthermore, the Office continues to explain, the reform particularly rewards large families. With the single allowance, a single-income unit with the head of the household as an employee with four children and 15 euros of Isee, he receives about 1.700 euros more per child compared to the previous situation. The benefit per child drops to 1.250, 1.100 and 1.000 euros respectively for families with three, two and one child.
The advantages for those who were excluded from previous subsidies
As for those who did not receive the household allowance (because not employees) or tax rebates (because incapable) "enjoy an average benefit per child" of 1.237 euros, writes the Parliamentary Budget Office.
The benefits for those who already had family allowance
Families that, on the other hand, already benefited from the measures will have an average increase of 598 euros per year.
Costs to the state
According to the analysis, the new single check is potentially worth approx 18,2 billion euros, in line with the official estimates of the technical report. The coverage comes for 11,5 billion from the resources deriving from the repeal of the old family allowances, tax deductions and other institutions of smaller amounts.
Single check: negative effects from distortions of cadastral income
The Upb then underlines that the relatively high weight of the patrimonial component in the ISEE to define the amount of the single allowance "may not reflect actual differences in the economic condition of the family and, moreover, could bring out new problems linked, for example, not only to the possible disincentives to save, but above all to the large ones distortions present in the current structure of cadastral income".
Read the FIRSTonline guide to the single check.
