Germany to replace child benefit with new support system by 2025

For many parents, this will come as shocking news, but child benefit in its current form in Germany will soon cease to exist, reports the portal karlsruhe-insider.de. The government is working on an alternative solution.

This topic has been widely discussed in Germany for several months now.

"In 2025, the government aims to introduce basic child benefits. The goal is to help poor children and parents access certain services more easily, quickly, and directly. Consequently, the old child benefit in Germany will soon be replaced by a new concept," reports the portal karlsruhe-insider.de.

Similar to the Polish 800 plus, the German Kindergeld is paid regardless of income. From 1 January 2023, the amount of the benefit is 250 euros (£215) for each child.

Previously, it depended on the number of children and was set at 219 euros (£188) for the first and second child, 225 euros (£194) for the third child, and 250 euros (£215) per month for each subsequent child.

The tax-free allowance increased in January to 6384 euros (£5490), and in Germany, parents can automatically deduct either the family benefit or the tax-free amount for children from their income tax. The tax office checks which option is more advantageous for the parents.

Within Olaf Scholz's government, there has been an ongoing discussion for months about how families will receive help next year. Money.pl reported that the coalition partners are not in agreement on the proposed solutions.