The German government agrees to guarantee a basic sustenance for children

After months of disagreement, German government partners agreed to provide “basic livelihood security” for the children.

The coalition government of the Social Democratic Party (SPD), the Green Party and the Free Democratic Party (FDP) has broken the latest political impasse over the costs of the basic child benefit payment scheme between different party-led ministries.

Family Minister Lisa Paus, Finance Minister Christian Lindner and Labor Minister Hubertus Heil announced at a joint press conference in the capital Berlin that progress has been made in the country after weeks of debate on basic livelihood security for children.

ADDITIONAL EXPENDITURE PLAN OF 2.4 BILLION EUROS

Paus stated that the German government plans to spend approximately 2.4 billion euros for child care from 2025 under the “Child Safety Basic Law Bill” and said: “After long years of political debate, the government “Federal has found a solution for child support payments. And we can be proud of it.”

Stating that negotiations between government partners on basic livelihood security for children were “challenging” and “constructive”, Paus described the agreement reached as “the most comprehensive social policy reform in years” in Germany.

“Child benefit payments are the central response to effectively address child poverty in Germany,” said Paus.

GUARANTEED INDEPENDENT OF THE FAMILY

Under the agreement, families will receive a guaranteed income for any child they have, regardless of their income. In addition, additional payments will be made to cover the children’s school expenses depending on the age of the children and the income level of the family.

Family Minister Lisa Paus and Finance Minister Christian Lindner have been arguing for months over how much additional money should go to child benefits.

Lisa Paus called for more funds for low-income families, while Lindner said only limited funds were available. Disputes between the two ministers over additional child benefits spilled over into other policy areas.

In early August, Paus blocked a Lindner bill that included tax breaks for businesses.

Meanwhile, birth rates in Germany have remained low in recent years as the government is developing various policies in the country, such as expanding childcare services for more births.

When the Social Democratic Party (SPD), the Green Party and the Free Democratic Party (FDP) formed a government in 2021, they promised to reform child benefit policy, but there was subsequently no agreement between the parties on amounts and timing. (AA)