The federal government is currently discussing numerous projects. The basic family allowance is one of them. It is planned to combine payments such as child benefit or child benefit. Let’s explain what we are talking about.
In its study, the Bertelsmann Foundation concluded that more than 20% of all children are at risk of poverty. This corresponds to 2.9 million. In the age group of young people from 18 to 25 years old, the poverty rate exceeds 25%. In Germany, a person is considered poor if they have less than 60% of the average income. In 2021, this was around €2,600 per month for two adults with two children.
The Bertelsmann Stiftung believes that the current situation is linked, among other things, to an increase in the number of refugees. At the same time, all experts agree that child poverty has long been a serious problem in Germany, especially among single parents and families with three or more children. In the east of the country, this risk is higher than in the west.
What should everything look like?
The Kindergrundsicherung, designed to combine existing family policy benefits such as child benefit, child benefit and other social benefits for children, should consist of two parts. The part that does not depend on income is approximately the same amount as the current child benefit, ie around 250 euros. In addition, there will be a second part, dependent on income. It will increase as needed – up to a certain limit. It is likely to be higher than current standard child benefit rates, which start at €318 for five-year-olds and end at €420 for 17-year-olds.
How much will the initiative cost?
The German Confederation of Trade Unions (DGB) has put forward a figure of 12.5 billion euros. Paus pointed out in an interview with the newspaper RedaktionsNetzwerk Deutschland (RND) that twelve billion euros is “rather the lower limit of the planned action”. For comparison, the federal budget for 2023 includes 476 billion euros.
What is the dispute about?
The coalition agreement between the SPD, the Greens and the FDP states: “We want to lift as many children as possible out of poverty, create better opportunities for children and young people through the basic child benefit and we focus on those who need it most. support.” Lindner expects tax revenues to exceed one trillion euros in 2024 for the first time, but he sees no room for an increase in basic child allowances. The Federal Finance Minister confirmed to the newspaper Bild am Sonntag that he expects record revenues. “However, this money is not sufficient to finance the legal obligations of the federal government,” he stressed. “Therefore, there can be no question of additional costs.”
“A lot has already been done for families with children,” Lindner said. Even more “desirable, but not always possible”. “Child benefits have been increased to 250 euros, more than at any time since 1996.” This means that the federal government gives seven billion euros more to families and children every year, he added.
Despite Lindner’s refusal, Paus insists on additional funds and increased benefits. “In the context of high inflation, the increase in family allowances is an important step,” she explained in response to a question from the RND. “In order to facilitate the application process and lift more children out of poverty, the basic child allowance must be adequately funded,” she demanded.
What does a political discussion look like?
“The Minister of Finance is not the only one to decide on the priorities which will be set in the budget”, declared Maria Klein-Schmeinck, vice-president of the parliamentary group of the Greens. Britta Hasselmann called the basic child allowance “one of the Greens’ next central projects”. The FDP, on the contrary, sees it as the responsibility of the Minister for Families: “Lisa Paus’ task is to simplify the administration for families, but so far nothing has come of it”, Christoph Mayer , deputy chairman of the parliamentary faction, told dpa. “Whoever asks for money must first say what exactly and how should be done.”
The opposition criticized Lindner. “The finance minister’s social coldness towards poor children is appalling,” Dietmar Bartsch, leader of the left-wing parliamentary group, told the RND. “What is needed now is a clear statement from the Chancellor on the issue of basic child allowances.” For the CDU, what was particularly problematic in Lindner’s statements is that the Minister of Finance no longer wants to present the key points of the 2024 budget. Johann Wadephul, deputy chairman of the CDU/CSU parliamentary group, said: “This federal government is knocked out. It is even impossible to agree on guidelines.
According to SPD leader Saskia, “we must now set ourselves the goal of reaching more parents and children who need this support and to whom they are legally entitled”.
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