A modest reduction in the likelihood of family poverty involving kids.
High inflation rates on food and housing expenses have left wallets struggling since 2023, affecting families with children most severely. However, the German government claims their efforts are showing some impact.
According to an advance report in the Rheinische Post, the risk of poverty for families with children declined slightly last year, with couples and single parents witnessing a decrease in their respective at-risk-of-poverty rates. Couples with one child saw a drop from 8.4% to 8.1%, from 11.2% to 10.4% for those with two children, and from 32% to 30.1% for those with three or more children. The AfD parliamentary group's question prompted this answer from the government.
These improvements can be attributed to various factors, including rising wages and increased state support for families. The increase in child benefit to €250 per child, effective January 2023, and the child supplement for low-income families contributed significantly to these changes. The Federal Ministry of Labor has highlighted this data from the microcensus in a recent report.
The number of households receiving the child supplement has increased, alongside a higher average payment amount. In February 2023, this number reached 413,000 households with approximately one million children, whereas the annual average for the year stood at 363,000 households and 927,000 children. These developments have sparked debates about the implementation of a basic child benefit. When the coalition government agreed on basic child protection in 2021, only 728,000 children were receiving the supplement; now there are around 300,000 more recipients, and the average payment has risen from €339 in 2021 to €429 in 2022.
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The German government's family policy initiatives, such as the increase in child benefit and child supplement for low-income families, have contributed to a modest reduction in the likelihood of family poverty involving kids. However, despite these improvements, poverty remains a significant challenge for many families, highlighting the need for ongoing policy efforts.
Source: www.ntv.de
