Luxembourg is one of the richest countries in the world, yet around 25% of children are at risk of poverty or social exclusion. Despite high public spending on children and a balanced investment across early, middle, and late childhood, child poverty remains persistently high.
The report analyses how Luxembourg allocates its spending on children and evaluates the impact of three key policy areas: child benefits, parental leave, and childcare.
Using microsimulations, the study shows that a combined reform of child allowances, childcare services, and parental leave could reduce child poverty to 10.7%, cutting current levels by more than half.
The report recommends strengthening universal and targeted child benefits, expanding affordable childcare, improving parental leave accessibility, simplifying benefit procedures, and addressing structural challenges such as high living costs and income inequality.
This publication forms part of the Age-spending and child poverty in Luxembourg project.
