Luxembourg social welfare and housing reforms

Luxembourg has introduced new legislative and financial measures to address social welfare and living standards. Initially, the government implemented an affordable housing law designed to combat a housing crisis. This legislation focuses on facilitating new construction, increasing municipal financial support, and improving the management of existing housing stock through renovation and energy efficiency funding.

The law also adjusts state funding ceilings based on regional land prices and introduces specific housing allocation criteria for single-parent households.

Following these housing reforms, the government approved a significant increase in family benefits to combat child poverty. Effective January 1, monthly family allowances will rise by 45 euros per child, with additional age-based increases for children aged 12 and older. Other measures include hikes in back-to-school allowances and the indexing of various benefits, such as birth and disability allowances. Officials noted these represent the largest increases in family benefits in 25 years, aiming to meet the estimated budget required for a dignified life.