New Cost-of-Living Support for Modest Incomes in Luxembourg

The Luxembourg government has approved a new financial measure called the “Cost-of-Living Supplement” to help households with modest incomes manage daily expenses more easily. This decision was agreed upon by the Cabinet on February 27, 2026, as part of efforts to strengthen social support and reduce poverty in the country.

This new supplement combines and replaces several existing social benefits, including the old cost-of-living allowance, energy bonus, and income support for older residents and low-income households. The aim is to simplify support for citizens while making it more meaningful and easier to access.

An important change is that families with school-aged children could receive higher support, with additional payments of up to €3,000 per child annually, putting more money directly into family budgets. Eligibility rules and income limits are being streamlined so more people can benefit smoothly.

Another key update is that applicants no longer have to file multiple forms each year. Instead, a single application can cover several benefits at once, reducing paperwork and encouraging more people to claim support they qualify for.

The government also plans to connect this new supplement to other social aid like housing help to make support more coherent and easier to receive for those who need it most.

Read more: gouvernement.lu/fr/actualites/toutes_actualites/communiques/2026/02-fevrier/27-mifa-cvc.html

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