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Great news for parents in Germany – Government announces largest child benefit (Kindergeld) rise in history

Government announces largest child benefits (Kindergeld) rise in history
Government announces largest child benefits (Kindergeld) rise in history

Kindergeld – Child benefits in Germany. The German government announced from next year parents in Germany will receive higher child benefits payments for the first, second and third child in the family.

The FDP has called the allowance the ‘biggest child benefits hike in history’.

Germany’s traffic-light coalition government had announced that it will increase child benefits payments (Kindergeld) by January 1, 2023, regardless of the fact the child might be the first, second or third child of the family.

According to The Local, this marks an increase of €31 per month for the first and second child, and an increase of €25 for the third child. Child benefit for any additional children will remain unchanged at €250 per month. 

What does the increase in Kindergeld mean for the first, second and third child in Germany?

This means that for a family’s first two children, the payment will rise from 219 to 250 euros per child per month. For the third child the monthly amount will rise from 225 to 250 eurosKindergeld payments for the fourth child and subsequent children already stand at 250 euros per month and will remain the same.

Why is the German government increasing the amount of child benefit in Germany?

Currently the German government sends out the payments to at least 16.8 million children. The original plan was to increase the amount to 237 euros per month which is inline with the current state of inflation.

Families with children have suffered the most from inflation with increase in rent, food and energy costs since they spend more on living costs than households with no children.

The coalitions government is is also planning to develop a Basic Child Allowance scheme. The scheme will replace Kindergeld with a more diverse range of family support payments. This package will include a standard, non-means-tested child benefit payment, which would be topped up for low-income families.

Source: The Local