The universal child benefit has returned to the center of public debate. The discussion has focused primarily on its cost and budgetary viability. But while we look at the numbers, one fact remains constant: in Catalonia, more than one in three children and adolescents live at risk of poverty or social exclusion. Given this, perhaps the question is not only whether or not a new benefit is necessary, but also what model of public support for raising children we have, and who it serves.
Unlike other European countries, where a significant portion of family support is provided through direct benefits, in Spain the vast majority of aid has been channeled through the tax system. This means it takes the form of reductions and deductions that lower the tax payable. In fact, the main state instrument for supporting families is a tax measure: the minimum allowance for dependent children in the Personal Income Tax (IRPF). This is a portion of income that is not taxed and translates into tax savings for families with children. However, these savings only exist if the taxpayer is required to file an income tax return—that is, if they have an income exceeding €22,000 per year, for example—and has a sufficient tax liability.
Because it is non-refundable, families with lower incomes—those who do not pay taxes or pay very little—cannot fully benefit, or are simply excluded. This means that the main state support mechanism for children primarily reaches middle- and upper-income families. We know that direct transfers are the most effective tools to reduce child poverty, and therefore, when support is channeled mainly through non-refundable tax deductions, the redistributive capacity is diluted and the State protects less precisely those who need it most.
When we criticize universal childcare benefits because they would also reach high-income families who "don't need them," it's worth remembering that these families already receive public support, albeit in the form of tax breaks. The debate, therefore, isn't whether we want to help high-income families as well—which we already do—but whether we are willing to include in the system the families who are currently excluded.
Doing so doesn't require inventing a new policy, but rather correcting an asymmetry in the current system. Converting the minimum allowance per child into a refundable deduction—and considering extending the obligation to file tax returns to low-income earners—would allow support to reach those who don't have enough income to claim it, as is already the case with other income tax deductions, such as those for maternity, disability, and large families. Ultimately, the decision is clear: either we expand the support that already exists, or we accept that it continues to exclude the children who need it most.
