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Spain's Child Support Fails the Poor: Actionable Policy Reforms

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Spain’s child at-risk-of-poverty rate stands around 29%, among the highest in the EU, and substantially higher than the overall population rate of 19%. The existing cash child support system in Spain fails to reach poor families: it is centered on a non-refundable child tax credit (“mínimo por descendientes”) that provides higher support per child to higher-income households, leaving as many as 60% of children in poverty without this tax relief. Making the child tax credit refundable or implementing a Universal Child Benefit would fill the gaps of the current system, outperforming the status quo in terms of poverty reduction at the same budgetary cost. More ambitiously, reducing Spain’s child poverty to the EU average would cost about 1.3% of GDP yearly, still well below existing estimates of the costs associated with childhood disadvantage (4-5% GDP).

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  • Cruces Hugo & Bornukova Kateryna & Hernandez Adrian & Picos Fidel, 2026. "Spain's Child Support Fails the Poor: Actionable Policy Reforms," JRC Research Reports JRC146328, Joint Research Centre.
    • Handle: RePEc:ipt:iptwpa:jrc146328
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    2. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
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