Background information

The aim of the scheme is to financially support families with preschool children, the provision of equal opportunities of preschool children in education and the reconciliation of work and family life. The scheme is included among the measures taken by the Cabinet on 27 May 2022 to confront inflation and the increasing prices of essential goods, which is a commitment from the National restructuring programme THALEIA 2021-2027 co-funded by the EU and the Republic of Cyprus.

Content of measure

The monthly allowance amounts to 80% of the tuition fees for children up to 4 years old at the beginning of the academic year, with the allowance ranging from €100 to €350 for each child based on the household income and the number of children in the family. For example, a family with 3 children aged from 2 to 4 years of age and a household annual income ranging from €39,000 to €49,000 receives a €100 monthly allowance for every child. Whereas a single parent family or a family with many children up to 2 years of age and with an annual income up to €19,500 receives a €350 monthly allowance for every child. The allowance is provided directly to the childcare providers participating in the scheme and covers the academic year. Childcare providers that increase their tuition fees by €10 per month or 5% in comparison with the prices of the last academic year have no right to participate in the scheme.

Use of measure

Annually, it is estimated that 16,000 children receive the allowance.

By the 1 September 2022, 238 childcare providers have concluded service agreements with the Deputy Ministry of Welfare, of which 106 in the district of Nicosia, 47 in the district of Limassol, 44 in the district of Larnaca, 18 in the district of Famagusta and 23 in the District of Paphos. The Deputy Minister announced on 5 November 2022, that to this moment more than 6,000 children have been benefited by the scheme. The Ministry announced that 6,522 children have benefited by the scheme in September 2022 and the payment to the child care providers of the period amounted to €902,000.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Does not apply to businesses	Children (minors) Parents Single parents People on low incomes

Actors and funding

Actors	Funding
National government Trade unions Employers' organisations	European Funds National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Consultation through tripartite or bipartite social dialogue bodies	Consultation through tripartite or bipartite social dialogue bodies

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: Peak or cross-sectoral level

Involvement

A social dialogue has preceded the adoption of the measure initiated by the Minister of Labour and Social Insurances within the domain of Labour Advisory Council, which is chaired by the Minister in office and the participation of social partners’ representatives – employers’ organization and trade unions. Social partners have no involvement in the implementation and monitoring of the measure; the Welfare Benefits Management Service of the Deputy Ministry of Welfare is the responsible agency for these tasks.

Views and reactions

Trade unionists and employers’ organizations as well as society at large have positive views of the measure. The adoption of the measure shall be considered as a social and political necessity as tuition fees in private care centers particularly are very high and disproportional with the income of many families.

The social partners participated in the institutional dialogue are the members of the Labour Advisory Council/Board. The Council is chaired by the Minister of Labour and Welfare and includes representatives of the major employers' organizations and trade unions:

1. Employers and Industrialist Federation (OEB)
2. Cyprus Chamber of Commerce and Industry (CCCI)
3. Pancyprian Federation of Labour (PEO)
4. Cyprus Workers Confederation (SEK)
5. Democratic Labour Federation of Cyprus (DEOK).

Sectors and occupations

This case is not occupation-specific.

Sources

• 27 July 2022: Tuition fee subsidy scheme for children up to 4 years old (www.wbas.dmsw.gov.cy)
• 02 September 2022: Εγκρίθηκαν 238 πάροχοι για Σχέδιο Επιδότησης Διδάκτρων και Σίτισης Παιδιών (www.stockwatch.com.cy)
• 12 October 2022: Δόθηκαν τα επιδόματα για το Σχέδιο Επιδότησης Διδάκτρων (www.offsite.com.cy)
• 12 October 2022: Ολοκληρώθηκε η καταβολή των επιδομάτων της περιόδου Σεπτεμβρίου για το Σχέδιο Επιδότησης Διδάκτρων και Σίτισης Παιδιών μέχρι 4ων ετών (www.dmsw.gov.cy)
• 05 November 2022: Δελτίο Τύπου: Δηλώσεις της Υφυπουργού Κοινωνικής Πρόνοιας κας Αναστασίας Ανθούση για το Σχέδιο «Κύπρος – Το Αύριο» Δηλώσεις της Υφυπουργού Κοινωνικής Πρόνοιας κας Αναστασίας Ανθούση για το Σχέδιο «Κύπρος – Το Αύριο» (www.dmsw.gov.cy)