Payment of 250 Swiss francs a month proposed to solve cost of living crisis

In recent weeks, the parliament and government in Switzerland have been considering measures to combat the rising cost of living. Now, the Social Democratic Party (SP) has proposed a “federal cheque” of 250 Swiss francs a month to help families and individuals with price rises.

250 Swiss franc payment would be given to lower and middle-class families

In the face of record levels of inflation, the SP said that a federal grant - an idea already used in Germany and France - would take significant pressure off workers and their dependents. The fixed sum would be given to all middle-class and low-income households in Switzerland - estimated at around 80 percent of the population.

In all, 250 Swiss francs a month would be given to every eligible adult to supplement their salary. 125 francs a month would also be given for every dependent child. The SP hopes that the plan will counteract record-high inflation and salary decline, which has led to a 0,8 percent drop in purchasing power this year.

Alternatives include cutting taxes to help struggling people in Switzerland

“It's not fair that it's low-income households and the middle class who always end up paying," said National Councillor Samuel Bendahan. He explained that the party is still refining who would qualify for the payment and how it would be given, but put the total price tag at around 2 billion Swiss francs a year.

In response, parties in opposition to the SP have proposed their own plan to combat the rising cost of living. Instead of giving direct payments, the Middle Party and FDP. The Liberals have proposed a plan to cut Swiss taxes to save workers the equivalent of 250 Swiss francs a month.

National Councillor Oliver Feller, from the FDP, noted, “[His party] can imagine the reduction of certain taxes,” such as temporary cuts to VAT or federal income taxes. Both plans are due to be submitted to parliament in the coming days.