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Germany eyes higher financial support for low-income families

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Germany eyes higher financial support for low-income families
Children play a colouring game at a German Kita. Photo: picture alliance / dpa | Jens Büttner

In the coming years, various types of financial support for parents will be unified under a single system in Germany. Here's how much lower incomes families could receive per child.

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With the scrapping of the current 'Kindergeld' (child support) system and the introducing of basic child allowance (Kindergrundsicherung) in 2025, Germany's traffic-light coalition government is hoping to dismantle bureaucracy and make it easier for families to receive the money they're entitled to.

But with welfare payments rising at the same time, lower earning families could also be entitled to more money from the state, it has emerged.

On Thursday, Family Minister Lisa Paus (Greens) offered an estimate of how high the planned basic child allowance for children at risk of poverty could be. 

This applies to families who earn less than 60 percent of the median income in Germany. 

In 2025 - when basic child allowance is introduced - benefits could range from €530 for the youngest to €636 for the oldest children, Paus told RND.

She said this takes into account the announced standard rate increase for Bürgergeld of about twelve percent for 2024 and an assumed further "moderate" increase of three percent the following year.

READ ALSO: Bürgergeld: Germany's monthly unemployment benefit to rise by 12 percent

"This is a good amount to give children the ability to participate more and provide equal opportunities," Paus said. The sums mentioned take into account both the guaranteed child support (which isn't linked to income) and additional financial aid for those on low incomes. 

The traffic light coalition wants to bundle previous benefits such as child benefit, long-term unemployment benefits (Bürgergeld) and the child supplement in the basic child allowance.

With the help of a central platform and greater transparency, the aim is to reach many families who aren't aware of their entitlement or who don't apply because of the current bureaucratic hurdles. 

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From 2025, all families with children - regardless of their income - will be given a guaranteed monthly payment per child that will replace the current child benefit of €250 per month.

READ ALSO: What families in Germany need to know about Kindergeld's replacement from 2025

On top of that, there will be an additional amount that is set according to the child's age and the parent's income. The less they earn, the higher it should be. 

The previous per-child payments for Bürgergeld claimants will also be absorbed into this. 

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