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Families first: The plan to respond to rising prices

Sep 6, 2022 | 0 comments

Families first: The plan to respond to rising prices


Article written by Rogério Maneta ([email protected]) and Catarina Nascimento ([email protected])


This Monday, September 5th, the Portuguese Prime Minister announced the new package of measures to support families, entitled “Families First”. These measures are intended to respond to the current inflation context and the rising cost of living. This family support package represents an overall value of 2.4 billion euros to try to minimize the impact that rising prices are having on households and are leaving many families in serious financial difficulties.

The government has announced eight support measures:

1- Extraordinary payment in the amount of 125 euros to each citizen (not pensioner) with income up to 2700 euros gross monthly.

2- Payment of 50 euros for each descendant, child or young person, up to the age of 24, regardless of their income.


A couple earns less than 2700 euros/month gross and has 2 dependent children under the age of 24, in October will receive a net amount of 350 euros.

These two extraordinary payments will be paid as early as October in the bank account linked to the Tax Authority or the Social Security.

3 – Extra supplement for all pensioners equivalent to half a month’s pension, or 50% of its value, paid in the month of October.


A pensioner with a 500 euros pension will receive a total of 750 euros in the month of October (500 euros a month that he normally receives and 250 euros as an extraordinary supplement).

With this, pensioners in 2022 will receive 14 and a half pensions, with this additional being subject to normal taxation. However, there will be no increase in the IRS rate to be applied.

As of January 1, 2023, the pensions, subject to this case, will be updated. The government has proposed an update of

– 4.43% for pensions up to 886 euros;

– 4.07% for pensions between 886 and 2.659 euros

– 3.53% for the remaining pensions subject to update.

This support is valid for all types of pensions (old age, disability, among others).


4 – Limit the increase of the rents, fixing a maximum ceiling for the update of the rents of 2%. This measure will come into force on January 1, 2023 and will be rewarded through the reduction of IRS and IRC of the landlords.

5 – The reduction of the electricity VAT from 13% to 6% as of October 2022, until October 2023 covers more than 85% of consumers;

6 – Public transport prices will be frozen, maintaining the current price of urban passes and CP travel in 2023;

7 – It will be possible to switch to the regulated gas market, resulting in savings of up to 33% in the monthly bill;

8 – Regarding fuels, the carbon tax will be suspended and the return of additional VAT revenue and the reduction of the Tax on Oil Products will be maintained.


For each 50 liter/tank, consumers will pay 16 euros less in diesel and 14 euros less in gasoline.



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