Middle class - Many families struggled with traffic light reliefs
The relief policy of the Traffic Light Coalition brought less benefit to most families in Germany according to a study by the Hans-Böckler Foundation than to singles and childless couples. The study conducted by the Institute for Macroeconomics and Business Cycle Research (IMK) of the Böckler-Stiftung focuses on the consequences of so-called cold progression in the period 2021 to 2024. With this problem, a wage increase is eaten up by inflation, one pays more taxes, and one's own purchasing power decreases.
The Ampel tried to compensate for cold progression by implementing tax reliefs and raising child benefits - according to the Böckler Foundation, however, this was not sufficient. The study found that the state had balanced out cold progression for most employees and employees, but families from the middle class came off relatively badly in the support measures.
Singles are doing well
The study conducted example calculations, according to which childless singles and childless couples came out better than before. The cold progression was compensated for them, and the purchasing power of these groups was higher in 2024 than in 2021. Low-wage earners also had more than before, as they were significantly relieved.
However, families with a medium income came off poorly: A family with two children, where both parents earn and together come to an annual net income of €58,990, had to accept a loss of purchasing power of €492 - the consequences of high inflation were therefore not compensated. A single parent with a child, who earns a net income of €43,693 per year, also had to accept a minus: She had €316 less at her disposal in 2024 after deducting inflation compared to 2021.
Families who earn a lot can rejoice about the effects of Ampel measures: A couple with two children, who earn a net income of €154,912 per year, were calculated to have a purchasing power gain of €992 since 2021.
Even poorer people profited according to the study: A single person who earns a net income of €16,095 per year had a plus of €457. In general, it looks good for singles without children: A single person with a net income of €45,725 per year had, according to the information, €100 more in the pocket than three years ago after deducting inflation.
Criticism of the policy
Study author Sebastian Dullien expressed criticism. "I consider it a social imbalance that families with medium income have not been sufficiently relieved." This could be quickly remedied by the Ampel-Coalition, according to Dullien, by raising child benefits more than previously planned. At the turn of the year, it is to rise by five euros to €255 per month. "Five euros is too little," says Dullien. Child benefits have not been significantly increased since 2021 to offset inflation.
- The study by the Hans-Böckler Foundation highlighted that the relief policy of the Federal government's Traffic Light Coalition benefited singles and childless couples more than families in Germany.
- According to the Institute for Macroeconomics and Business Cycle Research (IMK) of the Böckler-Stiftung, cold progression, where a wage increase is eaten up by inflation and more taxes are paid, affected families from the middle class the most.
- Contrarily, singles and childless couples saw an increase in their purchasing power due to the Ampel's policies, as the cold progression was compensated for them.
- Families with a medium income, specifically a family with two children and an annual net income of €58,990, experienced a loss of purchasing power of €492 due to high inflation, which was not fully compensated by the Ampel's measures.
- Even high-income families and poorer individuals, such as a couple with two children and a net income of €154,912, received a purchasing power gain of €992 since 2021, and a single person earning €16,095 had an extra €457, respectively.
- Sebastian Dullien, the study author, expressed criticism that families with medium income had not been adequately relieved by the Ampel-Coalition's policies and suggested raising child benefits more significantly to offset inflation.
- Child benefits are set to increase by five euros to €255 per month at the turn of the year, but Dullien considered this increase to be insufficient, as child benefits have not been significantly raised since 2021.
