The Russian government has announced significant updates to its maternal capital program, which is set to benefit many families starting from February 2025. According to Anton Kotyakov, the Minister of Labor and Social Protection, the total amount of maternal capital is expected to reach 912,000 rubles next year—an increase of 80,000 rubles from 2024.
This increase is part of a broader initiative aimed at supporting families with children within the country. The announcement was made during a meeting between President Vladimir Putin and his cabinet. Kotyakov specified, "The total amount will comprise 912,000 rubles, which is nearly 80,000 more than last year." This redesigned structure appears to acknowledge rising living costs amid increasing inflation rates.
Starting February 1, 2025, families expecting their first child will also see the amount increase by 60,000 rubles, bringing the total to 690,000 rubles. For families who have not previously received support for their first child, the incentive to have more children is strong; upon the birth of their second child, they will receive the full maternal capital amount, bolstering financial support significantly. He highlighted, "For families who have not received support upon the birth of their first child, they will be eligible for nearly 222,000 rubles for their second child."
Economist and family welfare expert, Mariya Ivanova-Shvets, noted the government's efforts to make the process as straightforward as possible. "The procedure for obtaining the capital has been simplified; families no longer need to go through social services to access their benefits. Instead, the funds are directly allocated post-birth." She added, "Once received, funds from the maternal capital are required to be used for specific needs like housing improvement or children's education, emphasizing the capital’s role as state financial support for families with children."
These funds, once obtained, have specific designated uses. According to Ivanova-Shvets, families predominantly utilize maternal capital to improve their living conditions, which remains one of the core goals of this financial support. The funds can also be allocated for children's education, monthly child allowances for families with low incomes, equipment for disabled children, and contributing to the pension of one of the parents. Families must analyze their specific needs and be strategic about how to use the capital effectively. If their financial situation is stable, they may choose to hold onto the capital as security until their children grow older. These funds can lead to increased pension contributions and benefits over time.
The adjustments to the maternal capital are not only applicable to new parents but extend benefits to families who have previously received certificates. Any unutilized funds remaining from earlier benefit years will also be adjusted according to inflation rates, providing continued financial support.
The program has proven to be influential as it encourages families to grow. Notably, the Russian government has also proposed extending the program until 2030—a significant move aimed at fostering demographics within the nation. Dmitry Puzikov, Deputy Minister of Labor, previously suggested making the program perpetual, highlighting the need for such social measures amid declining birth rates.
Kotyakov emphasized the importance of these changes at the government meeting, underscoring how integral they are to the country’s social policy. He reiterated, "It is important to note the increase applies not only to those becoming parents this year but to families who have received certificates over the years as well. Regardless of whether they have spent part of their allocated capital, the remaining funds will be indexed according to inflation."
Also noteworthy is the government's plan, proposed on multiple fronts, to increase many social benefits around the same time. More than 40 social payments, including various types of pensions, are also set for adjustment due to the current inflation of 9.5%, which affects family budgets across the spectrum.
President Putin has previously stated the government's commitment to providing social support for Russian families, especially as conversations turn to preserving and enhancing welfare programs for future years. The planned adjustments constitute part of this overarching goal to bolster societal stability through direct financial aid.
Overall, these changes to maternal capital demonstrate the government's intent to support families during challenging economic times, encouraging not only the birth of more children but also addressing the fundamental needs of those families already existing within the social fabric of the nation.