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There had long been a dispute about the financing of basic child security. Now the traffic light coalition has reached an agreement. What is the compromise and what does it mean for families? An overview.
the initial situation
Basic child security is considered the most important socio-political project of the federal government. The traffic light coalition speaks of a “restart of family support” and a “significant contribution to combating child poverty”.
It was undisputed that the traffic light coalition wanted to do something about child poverty. According to data from the Federal Statistical Office, almost every fourth child is affected by poverty or social exclusion. Before the high inflation started, it was about every fifth child. Children of single parents are particularly affected. How exactly the basic child security should look like has long been controversial.
What should the basic security look like?
Child benefit, child supplement, benefits from the basic income and social assistance: In Germany there are a large number of financial benefits for families from the state. This often makes things confusing for those affected. From 2025, basic child security is to combine existing benefits. This is also intended to reach families who, due to bureaucratic hurdles or lack of knowledge, have not been able to access the funds to which they are entitled.
The basic child security should consist of two components: an income-independent guaranteed amount and an additional amount graded according to age, which depends on the income of the parents. The guaranteed amount is to be paid instead of the child benefit. Adult children should be able to receive it themselves.
In addition, there should be additional contributions graded according to the age of the children and the income of the parents, which take into account the respective needs. The aim is that “all children and young people can benefit and assert their claims without bureaucratic hurdles,” says the agreement of the traffic light coalition.
Is there more money for families?
Regarding the costs of basic child security, it says: 2.4 billion euros are planned for the combination of services and administrative costs. However, there are no statements on possible concrete increases in benefits in connection with the introduction of basic child security.
However, a recalculation of the socio-cultural subsistence level would increase the standard needs in the second pillar of basic child security – the so-called additional amount. Concrete data on this would only be available after calculations by the Federal Statistical Office. This is an improvement, explained Family Minister Lisa Paus.
However, there will be no general increases in performance, emphasized Finance Minister Christian Lindner. Above all, he wanted to set incentives to take up gainful employment, said the FDP politician.
How can the Basic child security be requested?
It should be possible to apply for basic child security online. The “Family Service of the Federal Employment Agency” should be responsible. The Family Benefits Office is already responsible for the payment of child benefit, for example. “This means that all children are treated equally, regardless of their parents’ employment status, and stigmatization is prevented,” says the traffic light coalition agreement paper.
There should also be a “basic child security check” that parents can use to easily check whether a family is entitled to the additional child allowance.
What questions are still open?
Detailed clarifications are still needed on the specific processes involved in the applications, it said. In the next step, associations and states will also be involved before the traffic light coalition wants to present a joint draft law by mid-September, which will then be discussed in the Bundestag.
According to Lindner, further clarifications are still possible in the course of this process. The possibility of a review by evaluation after a certain period of time is also conceivable, added Paus. However, she is sticking to the start of basic child security in January 2025.
Why did it take so long?
The dispute in the traffic light coalition dragged on for months. In some cases, the negotiations were “really very tough,” said Minister for Family Affairs Paus at the press conference on the agreement. The main issue was the cost. The Greens politician had initially estimated twelve billion, but Finance Minister Lindner only planned two billion in the budget.
Paus now admitted that she believes that an even bigger step in the fight against child poverty is necessary. For financial reasons, however, this was not possible at the moment. Lindner assumes that the federal government will not be able to finance any further major social reforms for several years after the basic child security system.