The FDP wants to increase the child allowance, the SPD also wants to increase child benefit. It is one of the topics on the coalition’s agenda. Or will the new basic child benefit solve the conflict?
According to a government spokesman, the last word has not yet been spoken in the internal coalition dispute over the child allowance and child benefit. Spokesman Steffen Hebestreit said on Monday in Berlin that the impact of current wage developments, inflation and other factors on the calculations to be used is currently being examined. It then needs to be clarified whether, in addition to adjusting the allowance, an adjustment to child benefit is also necessary and possible. “These discussions will be held within the government in the next few weeks,” said Hebestreit.
Federal Finance Minister Christian Lindner (FDP) wants to increase the tax allowance for children without simultaneously increasing child benefit. SPD leader Lars Klingbeil believes this is unfair because then only families with very high incomes would be relieved. For families with lower incomes, however, child benefit is crucial; they do not benefit from the child allowance. The FDP points out that child benefit has already been increased to 250 euros in 2023: “The child tax allowance, on the other hand, should be added in the usual procedure. Nothing else is planned.”
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. The tax allowance was already increased from 6,024 euros to 6,384 on January 1st and, according to the Finance Ministry’s plans, should increase retroactively to 6,612 euros. Child benefit increased to a uniform 250 euros per month per child in 2023.
Mützenich shows incomprehension
SPD parliamentary group leader Rolf Mützenich, meanwhile, called for a completely new approach. “So that further debates about the unequal benefits for children no longer arise in the future, we should replace the child allowance with a new child benefit,” he told the “Rheinische Post” on Monday. He finds it “incomprehensible” why the finance minister is increasing the child tax allowance a few days after the decision on the 2024 budget.
“Everyone, as the Finance Minister said at the demonstration last Monday, must make a contribution to consolidation,” said Mützenich. “Why this shouldn’t apply to top earners is beyond my imagination.” The parliamentary group leader initially made no concrete suggestions for a “new child benefit”.
Government spokesman Hebestreit said that the child tax allowance and child benefit mechanism will be linked to the basic child welfare provision, which should apply from 2025. “So hopefully this discussion will be over.” The planned basic child security is intended to bundle previous benefits such as child benefit, benefits from citizen’s benefit for children or the child allowance.
The social director at Diakonie Deutschland, Maria Loheide, said: “Increasing the allowance for children of very well-earning parents, but not the child benefit, disadvantages all families with small and medium incomes.” In her opinion, the discussion also makes it clear: “We urgently need a socially fair basic child welfare system in which all services are brought together.”
