200 thousand PLN to start instead of 800 plus? A revolutionary proposition on the table

Soon it will be 10 years since 500 plus came into force. Over time, this benefit was renamed 800 plus and other similar solutions appeared, such as 300 plus or grandmother’s benefit. Since the addition’s appearance, discussions have been ongoing regarding its effectiveness, and proposals for changes in payouts appear every now and then. The experts of the Jagiellonian Club have just presented their idea. In their opinion, all benefits should be abolished and replaced with a one-off start-up payment.

200 thousand PLN to start instead of 800 plus?

As Bankier.pl writes, representatives of the Jagiellonian Club propose that instead of payments dispersed over time, the state guarantees each newborn citizen a capital of PLN 200,000. zloty. This amount would go to the Future Fund, within which funds would be collected in individual accounts and invested, which is intended to protect them against inflation – a phenomenon that has drastically reduced the real value of existing benefits, such as 800 plus. Parents could use this money for specific purposes: education, health care or own contribution to the child’s first apartment.

Experts also point out that by eliminating the flagship benefit, billions of zlotys could be released in the budget. 800 plus – as they emphasize – is a huge burden on state finances, and its impact on demographics has turned out to be negligible. Introduction 200 thousand PLN per child would be a “safety” and real starting capital, which, unlike current programs, would actually provide a chance for a better start in adulthood.

Can you afford the solution proposed by the Jagiellonian Club experts? The authors of the idea argue that it would be budget neutral because it would involve reallocating funds that are already being spent, but in an ineffective manner.