Money for families - Bavaria's Elterngeld payments have slightly decreased
According to the report of the Center for Family and Social Affairs (ZBFS) in Bavaria, around 1.366 billion Euro in child benefits (Parental Allowance) flowed to Bavaria last year. This is slightly less than in the previous year, when it was over 1.4 billion Euro.
The future development is difficult to predict, a spokesperson for the Munich Family Ministry stated. Since the birth rates in the free state have been declining, the "modest decline" in child benefits is expected to continue this year.
Fewer Applications
The child benefit, which is financed by the federal government, is intended to replace at least part of the income for mothers and fathers who interrupt or reduce their professional activity after the birth of a child.
However, there is a wage ceiling: From April 1, only couples and single parents with a taxable annual income of up to 200,000 Euro are entitled to this benefit. The ZBFS, headquartered in Bayreuth, processed 192,165 applications for child benefits in 2023, compared to 200,264 in the previous year.
The ZBFS distributed approximately 5 billion Euro in transfer payments last year - this includes both federal and state transfers. In addition to money for families, this also includes payments made by the federal government for the Old Age Security, or compensation for victims of violence.
Child Allowance and Kindergarten Allowance - Bavarian Specialties
The payment of the Bavarian Child Allowance is also managed by the ZBFS. Over 780 million Euro were transferred in 2023, compared to around 781 million Euro in the previous year. According to the Family Ministry, 788.5 million Euro has been budgeted for this benefit in the state budget for this year.
Child Allowance is available for all one- and two-year-olds. Parents receive 250 Euro per child per month, and 300 Euro per child per month for the third child and beyond. Child Allowance is independent of income, employment status, and type of childcare.
Likewise, Kindergarten Allowance is a state benefit. Nearly 48 million Euro were paid out in 2023 - more than in the previous year, when it was around 46 million Euro. The Kindergarten Allowance is budgeted for 50.8 million Euro in the current budget year, as stated by the ministry.
The Kindergarten Allowance is paid to parents whose household income does not exceed a certain income threshold. Parents can receive up to 100 Euro per child and per month.
In Munich, the authorities expressed concerns about the potential continued decline in child benefit due to decreasing birth rates in Bavaria. Despite the reduction in applications for child benefits at the ZBFS in Bayreuth, they still distributed over 5 billion Euro last year, which includes various transfer payments. The Bavarian Child Allowance, managed by the ZBFS, saw a slight decrease in 2023 compared to the previous year, with 780 million Euro transferred.
