Conditional cash transfers (CCTs) are payments to people who meet certain conditions. CCTs are increasingly being used to encourage families to invest in their children. However, there is limited scientific evidence on the effects of such programmes. The Peer Review in Budapest gave policy-makers thinking of introducing or reforming CCTs the opportunity to share experience and exchange views.

© Allen Graham - PDImages / Shutterstock

Host country: Hungary

Date: 8-9 October 2015

Peer countries: Belgium - Bulgaria - Croatia - Estonia - Latvia

Stakeholders: Eurochild, COFACE

Hungary’s family policy is part of its strategy to push forward the country’s social and economic development and invest in human capital. As well as giving families some universal allowances, it also offers CCTs to disadvantaged parents and children. This policy of providing CCTs as well as its impact on children was explored during the Peer Review in Hungary.

Key learning elements

• One should distinguish between universal benefits and targeted CCTs, but also to be precise about the type of CCT programme.
• CCTs work best when applied as part of a complex and integrated strategy which includes preventive measures. While CCTs can tackle well-defined challenges they cannot solve social inequality.
• The design of CCTs needs to be flexible so they can be adapted to the needs of vulnerable and special groups.
• Monitoring should be integrated into the application of CCTs to evaluate their effects.
• CCTs are less likely to be accepted by the public when applied to families and children than when applied in labour market policies.
• CCTs support the Social Investment Package’s Investing in Children Recommendation to ‘break the cycle of disadvantage’ through combining cash and in-kind benefits to access education and health services.

Peer Review Manager

Ulrike Hiebl (ÖSB Consulting GmbH)