On the occasion of International Family Day (15 May), Ombudsman Bernhard Achitz points out the increasing number of complaints about problems with family benefits: "The Ombudsman Board examines every single case, but very often it turns out that the authorities have not made a mistake. The errors are in the system and should be rectified by correcting the law, especially in the area of childcare allowance. We constantly point this out to the responsible minister, Claudia Bauer, but she always replies that she does not recognise any need for action. The Ombudsman Board, but above all the mothers and fathers affected, see things very differently." In addition to childcare allowance in cases where one parent lives or works in another EU country, for which families sometimes have to wait several years, there is a particular need for reform in the following cases:
No income-related childcare allowance due to sick leave
Families have been facing the same problems and hurdles for years when applying for childcare allowance. An improvement and simplification of the legal basis is overdue. For example, the income-related childcare allowance: You have to have worked continuously for 182 days before the birth or maternity leave. Anyone who has the misfortune of having received sick pay for more than 14 days, such as a mother from Upper Austria due to severe morning sickness, is left out in the cold. The financial loss is enormous. She had to switch to "special benefit 1" and lost 500 euros per month.
Parents under pressure to switch to lower childcare allowance
The Ombudsman Board criticises the fact that families are informally informed that they do not meet the requirements for the income-related childcare allowance and therefore have to switch to the - much lower - "special benefit 1". They do not receive any information about the legal consequences or the options for appeal. If those affected comply with this request from the authorities, they no longer have the opportunity to have the decision reviewed and any errors made by the authorities corrected. Parents feel pressurised by these letters. One applicant from Vienna reported that she had received a letter stating that she had to "meet a deadline, otherwise her application would not be processed". She also received the same information on the phone, and not once was the possibility of an appeal mentioned. She therefore assumed that she would not receive any childcare allowance for months and would not be insured if she did not sign.
Errors in childcare allowance applications can only be corrected for 14 days
If parents make a mistake when choosing the type of childcare allowance, there is still only a period of 14 days from the date of application to make a correction. However, they often only realise the mistake later, when they receive notification of the benefit. A young woman from Styria, who mistakenly selected the lump sum option when applying online, received 600 euros less per month - an existential burden. The AOB also demands that the 14-day period should not start from the date of application, but only from the date of receipt of the notification of entitlement to benefits.
Main residence registration forgotten, childcare allowance gone
Other parents have lost their entitlement to childcare allowance because they forgot to register a joint main residence for parents and child during the stressful time surrounding the birth of their child. The Ombudsman Board is therefore also calling for a legal change here.
DETAILS can be found in the Austrian Ombudsman Board's report on the year 2025, Volume 1, Review of public administration, from page 48: https://volksanwaltschaft.gv.at/berichte/berichte-an-das-parlament/
Families lose a lot of money due to legal loopholes - childcare allowance reforms necessary