Traffic light wants to increase child benefit by five euros
After lengthy household negotiations, the traffic light coalition has agreed on increased investments in families. In the coming year, child benefit and child supplements for needy families in social welfare are set to rise by five Euros, according to coalition sources. In addition, the federal government plans to invest two billion Euros each in the quality of kindergartens in 2025 and 2026. The budget for voluntary services is to remain at the same level as it was called back by the providers up to the end of 2023.
The Federal Ministry of Family Affairs is satisfied. According to ministry sources, the budget negotiations were successful for Family Minister Lisa Paus in cooperation with Vice Chancellor Robert Habeck in a challenging environment. There is a strong family package with financial support for children and families at risk, while significant investments are also being made in kindergarten quality. The Child and Youth Plan and democracy promotion will be continued at the same high level without cuts, and more money has been extracted for voluntary services than originally planned.
Federal Chancellor Olaf Scholz, Economy Minister Robert Habeck, and Finance Minister Christian Lindner had previously negotiated on the budget into the early morning hours. A cabinet decision is expected on July 17. After that, the Bundestag must deal with the plans before the budget can be passed in November or December.
Individual ministries such as the Foreign Office or the Development Ministry initially refused to accept Spending cuts proposed by Lindner with regard to international obligations. The Social Budget was also a contentious issue. In addition, there was still a gap of around 10 billion Euros that needed to be closed. The SPD insisted on postponing the financial burden of the Ukraine War and the debt brake to create more room for investments. For Linders FDP, this was not an option. The SPD rejected cuts in the social budget.
- The increased child benefit and child supplements for needy families will provide more financial relief for many families, helping them manage their budgets more easily.
- Despite initial disagreements, the SPD and FDP eventually reached an agreement on keeping the budget for voluntary services at the same level until 2023, providing more stability for these services.
- The additional funding for kindergarten quality under the traffic light coalition's family package will contribute to achieving better education and opportunities for children, benefiting families in the long run, and potentially fostering a more politically engaged youth with a deeper understanding of European values and the Euro currency.
