The February benefits for families arrived at the very best time
The family tax refund and the 13th month pension paid by the government as well as the youth tax exemption provide significant help to Hungarians, which contributes to the preservation of families' sense of safety. Thanks to the benefits, approximately four and a half million people received extra income in February, which is mostly spent on their family members, home, daily consumer goods and savings, according to the research conducted by the Maria Kopp Institute for Demography and Families (KINCS) in mid-February.
The extra money received in February strengthened the financial security of many families, pensioners as well as young employees. Continuing its policy of supporting families, the elderly and young people in the recent years, the government provided people another significant support at the beginning of the year: they paid family tax refunds for families raising children, and 13th month pensions for pensioners, and for the first time young people received their PIT-free salaries.
The Maria Kopp Institute for Demography and Families (KINCS), in its representative research conducted between 16 and 23 February, examined what people think of these subsidies and what they want to use the extra revenues for.
The survey showed that a large part of the society, three quarters of those surveyed, agrees with the statement that the measures providing extra money in February are of great help to those affected. 78 percent of all respondents said that tax refund for families is very helpful, 74 percent said that the greatest help is PIT exemption for young people and according to 71 percent of the respondents it is the 13 months' pension. Nine out of ten young people in their twenties responded so in the case of PIT exemption, and eight out of ten people raising children meant that family tax refund is a huge help. This means that, according to the vast majority of Hungarians, the government's measures represent real support for the groups targeted by the measures.
Three out of ten respondents would like to spend the extra money on their family members or home, a quarter would spend it on daily consumer goods and a fifth would save for the future. Roughly one in seven respondents would also spend on their health, and the proportion of those who would settle their debts or invest in bank savings or would buy new machines and devices, would be around 7-8 percent. 4-5% of the respondents would use the extra resources to buy a home or car, buy electronic equipment, travel or have fun.
There are minor differences between social groups according to how the February allowances are spent. Among those raising children and receiving family tax refunds, most plan to spend money on the renovation, development and furniture of their homes (36%).
Most pensioners stated that they would spend the 13th month's pension on children, grandchildren and family members (29%). There are twice as many pensioners who would use the extra income for their health as families or young people, and one in five would spend it on health.
A third of young people would spend on daily consumption and home, and a fifth would save for the future. Among them, there are twice as many people who would spend on electronic devices or travel (9%) compared to families and pensioners (4%).
In February, the family tax refund affected 1.5 million parents, the 13th month pension affected 2.5 million elderly people, and the personal income tax exemption affected 280 thousand young people, so the government's measures to provide extra money help nearly four and a half million of our compatriots. This way, the Hungarian people will have the opportunity to implement their plans for their progress. Uncertainty and the war situation make the February allowances even more valuable, as they contribute to increasing the resilience of families in times of crisis. The government's support measures for families play a role in making people feel safe in Hungary despite of the difficulties.
Methodology: The national representative survey was conducted by telephone, interviewing 1000 people among the adult population between 16-23 February 2022.
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