The Ministry of labour has developed a bill that would freeze the annual indexation of the parent capital, which is paid after the birth of her second child, until 2020. The Department explained that the decision was made “taking into account the financial-economic situation in the country”, reports “Interfax”.

The Ministry has also proposed legislation to establish a single date when will be indexed all social benefits. “The Ministry of labour has prepared a bill which proposes to establish as of 1 January 2018 uniform order of indexation of social payments to various categories of the population – once a year from February 1 of the current year for actual inflation”, – explained the official.

It became known yesterday that the government is preparing a bill to freeze the indexation of the parent capital until 2020, the Agency said. It was reported that in accordance with the document proposes to suspend the provision of the law “On additional measures of state support of the families having children”, according to which the size of the parent capital is annually revised taking into account the rate of inflation.

In late September the head of the Ministry of labour and social protection Maxim Topilin saidthat the size of the parent capital in the next year will not be indexed. Then he noted that this is the final decision of the government.

Last year the Ministry of Finance has decided not to index the parent capital in 2016, leaving it unchanged at 453 thousand rubles. The Deputy Prime Minister Olga Golodets, who oversees the government the social block, promised that the draft budget for 2016 includes an increase in the parent capital.

Later Golodets said that the issue of indexation of netcapital to 2017 is the only one in which the government failed to negotiate, and the head of the Pension Fund Anton Drozdov said that the final decision on the indexation of the parent capital will be made in October.

The program of the parent capital effective from 1 January 2007. According to the authorities, this is one of the main instruments of support of birth rate in Russia. Capital can be used to improve the living conditions of the child’s education or increase future retirement of the owner of the certificate on the amount of capital.

In 2016, the size of the parent capital amounts to 453 thousand rubles 26. In 2014, the Ministry had proposed to abandon this measure of social security because of inefficiency, but in the end the programme was extended until 2018 inclusive.

The Ministry has drafted a bill to freeze the indexation of matkapital to 2020 18.10.2016

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