The Danish government is proposing a change to the rules regarding child benefits, aiming to allow vulnerable children and young people to access their entitlements without parental consent. The initiative seeks to address situations where children are unable to access their benefits due to a lack of parental or guardian consent to open a bank account.
Minister for Industry, Business and Financial Affairs Morten Bødskov stated that the new rule targets children in difficult situations, such as those who are homeless, living with friends or relatives, or residing in shelters. Currently, child and youth benefits can be paid directly to the child if Udbetaling Danmark (Payment Denmark) deems it appropriate.
The municipality, in cooperation with Udbetaling Danmark, will assess which children should have the opportunity to open an account without parental consent. Bødskov emphasized the intention to create a simple account that allows access to entitled funds, with no possibility of overdrafts. The goal is to prevent children from encountering further problems.
Lisbeth Bech-Nielsen, a political spokesperson, indicated broad support for the proposal in the Danish Parliament, describing the current rules as unfair to vulnerable young people who may need to go through abusive or exploitative guardians to access their money. She highlighted instances where funds intended for the child end up in the hands of problematic parents.
The government plans to present the bill after the summer holidays, with the hope that the rule change can be implemented by January 1st. While neither Bødskov nor Bech-Nielsen could provide precise figures on the number of affected children, Bech-Nielsen mentioned consultations with various children’s organizations and Stenbroens Jurister, which provides legal assistance to vulnerable citizens.
Maja Løvbjerg Hansen, director of Stenbroens Jurister, noted that while the Ministry of Justice has previously stated that children already have the right to a bank account, practical implementation has been challenging. She cited a case where a 16-year-old client’s delayed access to a bank account led to financial hardship and, ultimately, imprisonment for robbery.
Stenbroens Jurister advocates for extending the proposal to allow all individuals aged 15 and older to open an account without parental consent, highlighting difficulties faced by children and young people with part-time jobs in obtaining bank accounts.