Factsheet for measure
DE-2023-1/3044
– measures in Germany
Increased monthly allowance for families with children
Höheres Kindergeld und weitere Verbesserungen für Kinder
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Country
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Germany
, applies nationwide
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Time period
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Open ended, started on 01 January 2023
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Context
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War in Ukraine
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Type
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Legislations or other statutory regulations
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Category
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N/A
– Increasing income in general
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Author
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Merlin Manz (Hans Boeckler Stiftung)
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Measure added
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13 February 2023 (updated 07 November 2023)
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Background information
The high inflation caused by the war in Ukraine had lead to enormous price increases for heating, hot water and electricity. The German government issued a relief package on 3 September 2022 worth €65 billion. The package increases the amount of money designated for child benefits and provides a supplement for children, adolescents, and young adults impacted by poverty. The measures were passed with the Inflation Compensation Act of 20 September 2022.
Content of measure
Since 1 July 2022, children, adolescents and young adults who grow up in families with little or no income receive an immediate monthly supplement of €20.
Child benefit increased to €250 per month per child on 1 January 2023. Prior to this change, the first and second child each received €219, the third child received €225 and each additional child received €250. A family with two children now receives €744 more per year. A family with three children now receives €1,044 more per year. This is especially important for families with low household incomes as the cost of living continues to rise.
The increase in child benefit leads to additional expenditure of up to €16 million per year for child benefit under the Federal Child Benefit Act (BKGG).
The
Child bonus 2022 to cushion pressures on families from rising energy prices
and the
Child benefit top-up
are measures closely related to this one.
is a measure that is closely related to the above-mentioned measures.
Use of measure
According to the Federal Statistical Office in June 2022, 9.9 million recipients received child benefit in December 2021, corresponding to expenditure of €47.6 million. In December 2021, around 16.7 million children received child benefits. In December 2022, around 17.2 million children received child benefits. Current figures can be found on the website of the [Federal Statistical Office] (https://www.destatis.de/DE/Themen/Gesellschaft-Umwelt/Soziales/Elterngeld/Tabellen/anzahl-kinder-kindergeld.htm].
Target groups
Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Consulted
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Unknown
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Form
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Direct consultation outside a formal body
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: Peak or cross-sectoral level
Involvement
The Association comment is part of a public hearing of the Finance Committee on 17 October 2022.
Views and reactions
Several experts described the measures in the Inflation Compensation Act as insufficient and called for significantly higher relief, especially for families. The main reason given was the inflation forecasts used as a basis in the draft law were outdated.
The Confederation of German Trade Unions (DGB) criticised that higher income earners would be relieved more by the child allowance than normal income earners. According to the DGB, the current system is based on the principle that the higher the income, the greater the resulting financial advantage from the child allowance. At the same time, the lower child allowance is not enough to ensure social participation for many children. According to the DGB, 20 per cent of all children in Germany live in poverty. Consequently, the goal must be to support children in a fair way. Therefore, the child allowance must be abolished in favour of an increased child benefit for all within the framework of a basic child allowance, the DGB demands.
Sources
