The greatest spending increase was driven by families utilizing the funds to purchase housing. In Q1, the Social Fund transferred nearly RUB 100 billion to this end, RUB 34.3 billion (52.6%) more than in the same period of the prior year. Funds were provided in response to 153,000 family applications.
Out of the total amount used by parents to improve their housing situation, more than RUB 82 billion was remitted to pay off mortgages and loans. The remaining funds, totaling nearly RUB 17 billion, were spent by families on the direct purchase of housing without loans; money was also invested in the reconstruction and construction of houses or as compensation for the corresponding expenses.
The second-largest area in terms of funding was the monthly allowances for children under 3. Under the current rules, these allowances are intended for low-income families (no higher than double the subsistence rates per person or RUB 37,900 per month on average across the Russian Federation). In total, the Social Fund remitted those monthly allowances in response to more than 438,000 applications from parents, transferring a total of RUB 15.7 billion. Last year, the corresponding payments for Q1 amounted to RUB 13.2 billion.
Maternity capital spending on children's education has grown by 44% since the year started. School, university or college payments are available when the child for whom the certificate was issued turns three years old. Payments for kindergarten or preschool education can be made immediately after receiving the certificate. Education payments were done in response to 122,000 applications from families. Over RUB 8 billion has been transferred to educational institutions in January – March. For the same period last year, education payments amounted to RUB 5.6 billion.
In total, by April, the Social Fund transferred funds in response to over 716,000 applications regarding maternity capital allocation and directed RUB 123.7 billion toward that purpose. That is RUB 39.4 billion more compared to the same period last year.
Note that maternity capital was adjusted for millions of Russian families this year. As a result, the amount paid on the first child now is nearly RUB 729,000, while the adjusted maternity capital for two children grew to RUB 963,000. The supplement for the second child has exceeded RUB 234,000.
The maternity capital program to support families with children has been in effect in Russia since 2007. Initially, the financial incentive could be received by parents of two children, but subsequently, certificates also started covering firstborns.
The Social Fund assigns maternity capital only once per family. If a family has not received a certificate on the birth of their first or second child, they are entitled to receive it for the third and subsequent children. The program lets families choose a single option for utilizing the funds or to distribute the money across several areas.