Madrid unveils €2.9bn plan to boost social aid and care homes. Credit : fizkes, Shutterstock
Madrid is set to roll out a major social care overhaul — one that puts older people, families, and young residents at the centre of its priorities.
The regional government has announced a €2.9 billion budget for Family, Youth and Social Affairs, a 7.8 per cent increase on last year’s funding, in what it’s calling a “historic investment” to modernise care and support services across the region.
A new approach to elderly care
The largest slice of the new budget will go to improving services for the elderly, people with disabilities, and those who depend on daily assistance. Funding for dependency care alone will rise by 16 per cent, reaching €829 million. The aim is to improve home support, expand advanced teleassistance programmes and strengthen the region’s vast care network – which already supports around 200,000 people.
But what really stands out is Madrid’s plan to replace large institutional care homes with smaller, ‘home-style’ residences. The government intends to build 80 new family-like living units across 11 public centres, each designed to feel warmer and more personal than the traditional model of care.
These new units will be limited in size, creating spaces that resemble real homes rather than facilities. For the first time, elderly couples who both require assistance will be able to live together, instead of being separated by the system – a change that many have long been calling for.
Regional officials have called it “a step forward towards more personalised, humane, and future-ready services,” describing the project as part of Madrid’s broader effort to lead Spain’s transformation of social care.
New rental aid for low-income pensioners
One of the most talked-about measures in the new plan is the rental subsidy for pensioners who receive non-contributory pensions and struggle to pay rent. Starting in 2026, these individuals will be able to apply for annual aid of up to €525 to help cover housing costs.
The details – such as income limits and application requirements – are yet to be confirmed, but the move marks an important step in tackling the financial pressures many pensioners face in the capital.
In addition, the budget increases funding for programmes supporting people at risk of social exclusion and those facing emergency situations by 40 per cent, further strengthening the safety net for Madrid’s most vulnerable citizens.
Young people and families to benefit too
The regional government is also broadening the support available for families and young people. One highlight is the expansion of the Carné Joven (Youth Card), which will now be available from the age of 12 instead of 14. The card provides discounts on cultural, educational and leisure activities, and is used by thousands of young Madrileños each year.
Meanwhile, the new MadridXplora programme will fund international study trips and learning experiences for students – an initiative aimed at opening doors to opportunities abroad.
Families caring for children with complex palliative conditions will receive new assistance, and the government plans to increase financial support for foster families, particularly those taking care of children aged 12 and older. There will also be new incentives to encourage long-term foster care, extending eligibility up to age 21.
In another first, Madrid will open a public housing unit for pregnant minors who have no family support — a project designed to protect young women in especially vulnerable situations.
Stronger action against gender violence
The fight against gender-based violence will also receive a significant boost, with the budget for this area rising by 18 per cent to €38.3 million. Officials say the additional funding will “consolidate and expand resources” already in place, while also helping launch a new integrated care centre dedicated to rural women.
The measure is part of the Programa Mujer, which focuses on giving women across the region access to counselling, legal help, and employment support, regardless of where they live.
Madrid’s social vision for the future
Overall, this new plan marks a clear shift in how Madrid approaches welfare – moving away from large, impersonal institutions and toward smaller, community-based, people-first care models.
With record funding and targeted initiatives for the elderly, families, and young people, the regional government hopes to build a more caring, inclusive, and modern social system.
As one official put it, the goal is simple: “to ensure that every person in Madrid, no matter their age or circumstance, feels seen, supported, and at home.”
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