Federal Finance Minister Lindner has announced an increase in child benefit for 2025. The child allowance and basic allowance should also increase. The exact heights are still open.
Federal Finance Minister Christian Lindner has promised an increase in child benefit next year. Since 2023, parents have received a uniform amount of 250 euros per month and child. How much more money they will receive in the future is not yet clear.
To find out the exact amount, we will have to wait for the minimum subsistence report in the fall, the FDP politician told the Germany editorial network. The minister said that child benefit had already been “increased very sharply and disproportionately” in 2023 in order to relieve the burden on families. That was a “great success”. That’s why the next increase won’t be due until 2025.
According to Lindner, together with an increase in child benefit, there will also be a further increase in the basic allowance and the child allowance in wage and income tax in 2025. The finance minister once again called for the basic allowance and child tax allowance to be increased retroactively for 2024. This is necessary for constitutional reasons.
Discussion about child benefit and allowances
There has been a discussion about child benefit and child allowances in the traffic light coalition for a long time. Lindner wants to increase the tax allowance for children without increasing child benefit at the same time. The SPD considers this to be unfair because it would only provide relief to families with high incomes.
The Greens said it was common practice to increase child benefit and child allowance equally. Citizens rightly expect this reliability.
The allowance is worthwhile for higher incomes
Parents automatically receive either child benefit or the income tax allowance for children. The tax office checks what is more advantageous for you. The allowance is often only worthwhile for higher incomes. For families with lower incomes, child benefit is crucial; they do not benefit from the child allowance.
The tax allowance was already increased from 6,024 to 6,384 euros on January 1st and, according to the Finance Ministry’s plans, should increase retroactively to 6,612 euros. Child benefit last increased in 2023.
In addition to child benefit, children from low-income families can also receive a child allowance. In 2024, the maximum amount had increased significantly due to inflation – from 250 to 292 euros. This means that families with low incomes currently receive a maximum of 542 euros per month for their child, together with the child benefit of 250 euros.
Philip Brost, ARD Berlin, tagesschau, April 25, 2024 10:45 a.m