Home Financial glossary Basic child income support (planned reform)
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Basic child income support (planned reform)

Familieab 9 J.
A planned German reform: child benefit, child supplement, the education package and parts of citizen's income for children are to be combined into a single benefit. Goal: less bureaucracy, less child poverty.

The Kindergrundsicherung (basic child allowance) in Germany is intended to bundle various state benefits for children into a single benefit that's easy to apply for.

What is to be combined?

• Child benefit (currently €250/month)
• Child supplement (up to €292/month for low earners)
• Education and participation package (school supplies, lunch, trips)
• Parts of the citizen's income (Bürgergeld) for children

Two components (planned):

1. Guaranteed amount:

• For ALL children, regardless of income
• At least equivalent to the previous child benefit (€259)
• To be paid out automatically

2. Additional amount:

• Income-dependent – those who earn less get more
• Staggered according to the parents' income
• Intended to tackle child poverty in a targeted way

Why the reform matters:

• 2.9 million children in Germany are at risk of poverty
• Many families don't apply for the child supplement (too complicated, too much bureaucracy)
• The basic child allowance aims to change that through automatic checks and a digital application

Current status:

• The legislative process is under way – actual implementation and timetable depend on political negotiations
• Originally planned for 2025, possibly delayed
• Budget discussions: estimated additional costs of €2–6 billion per year

Did you know? Although the child supplement brings up to €292/month on top of child benefit, only about 30% of eligible families claim it. The rest don't know about it or are put off by the bureaucracy.
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