The German government talks about a “new start for family support”: an agreement has been reached on the Basic Child Benefit. From 2025, an additional expenditure of 2.4 billion euros is planned.
The government coalition plans additional spending of around 2.4 billion euros on the basic child benefit from 2025. This was confirmed by Federal Family Minister Lisa Paus (Greens) and Federal Finance Minister Christian Lindner (FDP) at a joint press conference with Labor Minister Hubertus Heil (SPD).
The plans are set out in a document in which the federal government talks about a “fresh start for family support”.
The different financial aids from the state will be grouped together into a single support benefit. All children and young people would benefit from basic child safety”, their rights can be claimed “without bureaucratic obstacles”.
The basic child contribution consists of an income-independent “child guarantee amount” (until now known as child benefit) and an “additional child amount” depending on age and income.
Children whose parents receive Citizen Compensation or social assistance are also expected to benefit from this. Children who are no longer minors can receive the guaranteed amount themselves.
“Adjustment of needs with the reality of life”
However, the expenses are expected to continue to increase even afterwards, because the so-called minimum socio-cultural standard of living, which is decisive for the amount of compensation for the citizen, must also be re-evaluated.
“Thus, the needs of children will be adapted to the reality of current life,” the document states. “As a result, the normal requirements for child support will increase.”
The vital social-cultural minimum
According to the scientific service of the Bundestag, the vital socio-cultural minimum also includes the guarantee of the possibility of maintaining interpersonal relations and participation in social, cultural and political life. In the case of the basic guarantee for children, it is about enabling them to take part in sports or music lessons, school trips or a trip to the theater with the school.
Family service as the central platform
According to the document, in the future there will be one point of contact for all child benefits: the Family Service of the Federal Employment Agency. All children should be treated equally, regardless of the professional status of the parents.
In addition, a “basic social security check for children” is expected to take place. The aim is to use various data in a protected manner to check whether a family is entitled to child benefit.
The agreement reached in the chancellery for an initial amount of 2.4 billion euros was preceded by a dispute of several months between the Greens and the FDP within the coalition. Until now, Finance Minister Christian Lindner (FDP) wanted to reserve only two billion euros for the next budget year. Family Minister Lisa Paus (Greens) demanded up to twelve billion euros and recently blocked a bill from the Finance Minister for tax relief. Paus has now said that she no longer has any objection to the so-called Growth Opportunities Law.
Paus is satisfied with the result
During the press conference with Lindner and Heil (SPD), Paus spoke of “sometimes very difficult negotiations”. She would have liked an even bigger step in the fight against child poverty, but she is still satisfied with the result. According to her, the document creates more social justice.
The Minister of Finance spoke of a “good result”, which was preceded by “constructive and intense discussions” given the complexity of the topic. For him, it is important that the reform encourages work. People should not fall into material poverty despite their work.
Lindner: Probably the last great social reform
According to him, the federal state can no longer finance major social reforms for several years. The Basic Child Benefit will cost around €400 million more in 2025 than previously planned. This further increases the need for action for Budget 2025. “This is why I venture to predict that, in the coming years, the basic contribution for children will be the last major social reform to enter the budget framework of the federation”.
Heil: “A matter of dignity”
Labor Minister Heil said it was a “matter of dignity” that every child should be given the chance to do something with his life. The Basic Child Benefit is, along with Citizenship Income and housing benefit reform, the federal government’s third major project.
After agreeing on the essential points, the associations and federal states will discuss until the government coalition presents a joint bill by mid-September, which will then be debated in the Bundestag. Further clarification is possible during the proceedings, according to Lindner. A review after a certain time is also possible, Paus added. However, it sticks to the launch of the Basic Child Benefit in January 2025./DW/
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