National Audit Office: Childcare benefits for foreigners are rising sharply, yet SODRA lacks the tools to manage the risk of double payments

2026-06-03

  • Benefits for foreigners are rising rapidly. Over two years, the number of foreign nationals receiving childcare benefits in Lithuania has increased by 56.2%, while the amount paid out to them has jumped by 78.6%, reaching EUR 7.94 million.
  • Benefits for children not registered in Lithuania. The number of third-country nationals receiving benefits for children who are not even included in the Lithuanian population register has increased by as much as 14.2 times.
  • Controls exist only “on paper”. SODRA lacks effective mechanisms to verify whether similar benefits for the same child are being paid both in Lithuania and abroad, or whether benefit recipients are receiving additional income from employment abroad. Due to these control gaps, the auditors were unable to confirm the accuracy of EUR 454.9 million in expenditure on maternity, paternity and childcare benefits.

Picture for National Audit Office: Childcare benefits for foreigners are rising sharply, yet SODRA lacks the tools to manage the risk of double paymentsThe financial audit of the 2025 set of accounts of the state social funds carried out by the National Audit Office showed that the country’s social support system is becoming increasingly open to foreign nationals, yet state institutions have failed to put safeguards in place to protect public finances from potential abuse or the duplication of benefits in another country.
  
The figures reveal new trends: demographic decline vs. a boom in foreign nationals
  
The audit data reveal a paradoxical situation: while the total number of childcare benefit recipients in the country is declining, the segment of foreign nationals is growing exponentially. Possibly due to the declining birth rate, the total number of benefit recipients in Lithuania has fallen consistently over three years by as much as 18.3% – from 58,017 (2023) to 47,416 people (2025).
  
A completely opposite trend is observed among non-EU citizens. Here, the number of recipients shot up by 64% (from 1,113 to 1,824 people). While in 2023 foreigners accounted for around 2% of all recipients, by 2025 this share had doubled to 4%. Although the total amount of SODRA benefits declined in 2025, the amount paid to foreign nationals almost doubled: it rose by 78.6% – from EUR 4.4 million to nearly EUR 8 million (EUR 7.94 million).
  
The most significant increases were seen among citizens of Central Asian countries and Ukraine
  
The audit report highlights several countries whose citizens’ benefits increased not by percentage points, but by multiples. The most striking surge was recorded among citizens of the Republic of Tajikistan, where the number of recipients increased 17-fold over two years – from just 15 people in 2023 to 257 recipients in 2025. A similar trend is observed when analysing data for citizens of the Republic of Uzbekistan, where a 6.6-fold increase was recorded, with the number of recipients jumping from 22 to 146 people. In the group of citizens of the Republic of India, the auditors highlight a completely new phenomenon, as not a single benefit recipient was recorded in 2023, whereas by 2025 their number had already reached 21. Meanwhile, the number of Ukrainian citizens receiving childcare benefits doubled during this period, rising from 272 to 556 people, while the amount paid to them almost tripled, reaching EUR 2.3 million.
  
The opposite trend is observed only among EU citizens. The number of EU, EEA and Swiss citizens receiving benefits in Lithuania remains minimal and has even decreased slightly (from 143 to 138 people). Labour migration affecting the Lithuanian social system occurs exclusively from third countries.
  
The phenomenon of “unregistered” children: are benefits paid to families living abroad?
  
The greatest control anomaly, increasing the risk of abuse and weakening the protection of public finances, is the payment of benefits for children who are not included in the Lithuanian population register. The number of such recipients in the country has increased by as much as 14.2 times over two years (from 46 to 651 people), while the amount paid to them has risen 10.4 times (to EUR 1.22 million).
  
The scale of this phenomenon is particularly evident among groups of Central Asian nationals. Of the 257 citizens of the Republic of Tajikistan receiving child care benefits, as many as 95% (244 recipients) receive them for children who are not registered in Lithuania. A similar situation is observed among citizens of the Republic of Uzbekistan.
  
The audit results show that foreigners working legally in Lithuania and covered by social insurance are exercising their right to receive benefits, even if their children and families do not physically reside in Lithuania. As the information systems of these countries are not integrated into EU data exchange networks, and SODRA has not developed any tools to check whether benefits are being paid for the same children in their country of origin, the state has limited means of ensuring that benefits are not being duplicated.
  
Dynamics of geopolitical neighbours: Belarus and Russia
  
Different, yet no less significant from a financial perspective, trends are observed when analysing data on citizens of Belarus and Russia. Looking at the group of citizens of the Republic of Belarus, although the total number of recipients fell by 22% – from 428 to 333 people – the amounts paid to them remain higher than in 2023. This indicates a rise in the average wage for this group, on which child care benefits are directly calculated. Meanwhile, the number of Russian citizens in the country remains stable, fluctuating between 124 and 130 people, but the amount paid to them has risen by as much as 53.3% over two years, increasing from EUR 534,000 to EUR 819,000.
  
The auditors emphasise that this rapidly changing structure of the system increases the risk that individuals may receive similar benefits for the same child simultaneously in both Lithuania and their country of origin, which is directly prohibited by European Union regulations and national legislation.
  
Blind reliance on the assessment of income abroad
  
Under the current rules, the amount of both maternity and paternity or childcare benefits must be reduced or their payment suspended if the person has other income from employment during the benefit period. However, SODRA only monitors income earned in Lithuania. If a person works and earns income abroad, this information does not reach the state authorities.
  
At present, the system essentially operates exclusively on the principle of trust. During the audit, the Ministry of Social Security and Labour acknowledged that to date there has not been a single case where a foreign national or a person working abroad has, on their own initiative, declared income from employment received abroad to SODRA. Cross-border information exchange is fragmented and slow, and legislation does not even impose a clear obligation on SODRA to carry out active checks or to require applicants to provide certificates from competent foreign authorities.
  
“The tenfold increase in the number of recipients signals that the state benefits system can no longer operate on a system of blind trust. When control mechanisms are not in place, public finances remain unprotected from the risks of double payments. I call on the Government and decision-makers to undertake a systematic review of these and other benefits – we must create effective and efficient safeguards that would guarantee transparency and prevent any opportunities for abuse,” says Auditor General Irena Segalovičienė.
  
National Audit Office recommendations – urgent legislative changes are needed
  
In order to prevent potential misuse of public funds, the National Audit Office has issued strict recommendations to the Ministry of Social Security and Labour and SODRA. It is required that legislation be amended urgently and that two fundamental changes be introduced:

  • Legislation will clearly delegate to SODRA’s regional offices the function and strict obligation not only to await data from abroad, but also to actively verify information regarding applicants’ income and benefits received abroad.
  • To tighten the accountability of benefit claimants by requiring them to submit official documents from foreign countries proving that they are not receiving a similar benefit abroad, and to declare any income from employment received abroad.

The legal changes will also affect SODRA’s internal procedures: in order to create automated control measures, the provisions governing information systems will need to be reviewed. If an application is submitted by a third-country national and the child’s details are not in the Lithuanian Population Register, the system should automatically suspend the payment of the benefit until reliable evidence is received from the foreign state or the person submits documents substantiating the legality of their status.
  
The responsible authorities have already planned measures to implement these recommendations and have undertaken to submit draft legislation to specific deadlines, which will close gaps in the legal framework and protect the country’s social budget.