High percentage of Czech families lose child & welfare benefits

Some 39 percent of Czech families lost child benefits as of January due to public finance reforms that took effect at the beginning of January, according to statistics revealed by the Labour and Social Affairs Ministry on Friday. According to the numbers, some 1.5 million families who received child benefits up until the end of 2007, more than 580 thousand lost the possibility. Of some 200 thousand families previously entitled to social benefits, more than 20 thousand lost the right as of January 1. Labour Ministry spokesman Jiří Sezemský has stressed, despite the changes, that a majority of Czech families will not lose out, as taxes have been lowered. But union organisations have largely argued the opposite, saying peoples’ financial situations will worsen. They contend that families with children, as well as pensioners, will be the hardest hit.