The Ministry of Welfare (MoW) has outlined that improving demographic policy in Latvia will require a total of 150 million euros, which includes support for families with children and care for children outside the family environment.
The planned increase in expenditures covers a broad range of support measures: parental benefits, childbirth allowances, family state benefits, maintenance allowances for children under guardianship, remuneration for guardians, and social guarantees for non-working guardians.
In addition, increased funding is proposed for adoption-related support—adoption allowances, care compensation for adopted children, remuneration for adoptive parents, and foster care compensation. The plan also includes compensation for municipalities covering increased foster care allowances and higher pay for specialized foster families.
The ministry also wants to expand support for specialized foster family services and balance service availability at out-of-family care centres for guardians and adoptive parents.
Based on a task set by the Demographic Affairs Council at its 1st of April meeting, the MoW has modelled various benefit scenarios for families with children and enhanced support for children in out-of-family care, using current statistics and 2026 projections. These scenarios include the possibility of gradual benefit increases.
One of the ministry’s top priorities is to increase the parental benefit for children up to 1.5 years old.
If this benefit is raised from the current 171 euros per month to 50% of the income median—approximately 425 euros next year (with automatic future adjustments based on income changes)—then for 2026 alone, 72.2 million euros would be needed for benefit adjustments and social insurance contributions toward pensions, unemployment, and disability insurance.
At the April meeting, the Demographic Affairs Council decided that ministries must submit specific proposals to the MoW by the 16th of May, outlining concrete actions to improve the quality of life for families with children in 2025. These proposals were expected to include measurable outcomes, budget estimates, and funding sources.
As of the deadline, the Ministry of Welfare had not received specific proposals from other ministries. However, some began submitting them the following week, or requested deadline extensions, promising to provide input “as soon as possible.”
The MoW’s report reviewed in April also emphasized cooperation with the Ministry of Health, Ministry of Smart Administration and Regional Development, Ministry of Culture, and other institutions. It highlights the need to engage municipalities, NGOs, and trade unions in implementation.
The report stresses that improving the demographic situation requires not only financial support for children entering families, but also better options for parents to balance work and caregiving, such as more flexible childcare services tailored to family needs.
Equally important are affordable housing for young families and professionals, quality healthcare, psychological support for parents, and other support mechanisms.
The ministry points out that effective and targeted national and municipal support must be based on evidence. At the same time, long-term demographic improvement depends heavily on overall economic growth, people’s financial stability, and their sense of security.
There is also a need for a societal shift in attitude, creating a more inclusive and family-friendly environment. The state must reinforce the value of family in society through supportive policies that make parents feel recognized and supported.
In addition to strengthening support mechanisms, it is important to reduce risks of death from external causes, promote public health, education, and well-paid job opportunities that sustain quality of life and reduce the need to seek better conditions abroad.
As the MoW notes, economic motives have been the main driver of emigration from Latvia, indicating dissatisfaction with income levels, living conditions, and the working environment. Therefore, reducing emigration and encouraging return migration should be key objectives of national policy.
As previously reported, the MoW’s demographic development plan is based on three strategic directions: recognizing every child as a value, including support for child-rearing and improving daily family life, enhancing quality of life, including services and infrastructure and reducing emigration and supporting return migration.
The implementation of these measures in 2025 is planned within the existing state budget, while additional funding needs for 2026 and beyond will be assessed during the annual budget planning process, with ministries submitting proposals for priority actions.
Latvian President Edgars Rinkēvičs has also emphasized that the key solutions to improving the country’s demographic situation include revising benefit levels, improving healthcare, and increasing access to housing.