Child Benefit in Germany: Potential Increase in 2024 and Future Prospects

Current status of child benefit in Germany

The current status of child benefit in Germany stipulates that families receive 250 euros for each child. These amounts were last increased in January 2023 and have remained unchanged since then. Compared to other European countries, Germany is in the middle range.

No increase in child benefit in 2024

It is clear that child benefit in Germany will not be increased in 2024. The last increase in the amount to a uniform 250 euros per month for each child was in January 2023. From 2025 onwards, a basic child benefit is to be introduced, the exact amount of which is still unclear and will replace the previous system.

Basic child security instead of child benefit

It is planned that in the future basic child security will combine child benefit, child allowance as well as parts of citizens’ benefit and social assistance. The education and participation package should also be included. The new benefit consists of a guaranteed amount and an additional contribution. The aim is currently for the guarantee amount to be 250 euros – this amount should be able to be checked and adjusted every two years. An increase could therefore take place in 2027 at the earliest.

Variable additional contribution

It is planned to introduce a variable additional contribution. This should be determined depending on the child’s actual need in order to ensure the minimum subsistence level. The amount of the contribution is determined by crucial factors such as the family’s income or the age of the child. At the moment, however, it is not possible to say exactly who will ultimately receive what amount. The draft law must first be approved by the Federal Cabinet and then the parliamentary legislative process begins.

Families with low incomes should be strengthened

The planned reform of basic child benefits aims to increase support for low-income families and simplify benefits for families with children. In contrast to child benefit, the new measure was designed to be income-dependent in order to be able to provide greater support, particularly to disadvantaged households.

Effects of increased child benefit payments on family budgets

An increased child benefit payment could mean significant financial relief for many families in Germany. Low-income families in particular could benefit from an increase and thereby improve their budget. But higher child benefit payments would also mean a noticeable improvement for families that are in a difficult financial situation or have several children. An increase in child benefit could help families be better able to manage their daily expenses and offer their children better prospects for the future. However, it is important to note that increasing child benefit alone is not enough to solve the problems in the German family system. Further measures and reforms are needed to adequately support families and improve the compatibility of family and work.

Comparison with other European countries: How does Germany fare?

A comparison with other European countries shows that Germany performs rather mediocre in the area of ​​child benefit. While some countries such as France or the Netherlands have higher child benefit payments, other countries such as Greece or Portugal lag significantly behind Germany. However, it must also be taken into account that the cost of living and average income vary greatly in different countries. Experts are therefore calling for greater harmonization of child benefit payments within Europe in order to create equal opportunities and conditions for families. A possible increase in child benefit in Germany would be a step in the right direction and could help reduce the financial burden on families. However, there are also criticisms of such an increase, as it is feared that it could lead to higher inflation. However, the decision-making processes regarding child support lie with government policy and it remains to be seen what measures will be taken to support families in Germany and improve the family system.