A newly released study by the Institute for Economic Research (IW) in Cologne reveals significant regional disparities in public investment in early childhood care across Germany. The findings, published across the Funke-Mediengruppe newspapers, highlight a marked difference in per capita spending on childcare for children under six between eastern and western German states, prompting renewed scrutiny of regional social policy and inequality.
Eastern German states consistently allocate substantially more public funds per child. Brandenburg leads the nation, investing €12,145 per child under six, followed closely by Berlin (€11,964), Mecklenburg-Vorpommern (€11,061) and Saxony-Anhalt (€10,693). This stands in stark contrast to the comparatively low levels of investment seen in western states. North Rhine-Westphalia spends €9,085 per child, Bavaria €8,978 and Saarland €8,895. Baden-Württemberg lags behind with just €8,590 per child. The national average sits at €9,563.
The IW attributes this divergence primarily to differing rates of childcare utilization among children under three. Data from March 2023 reveals a substantial difference: western states saw just 19.4% of non-school-aged children attending childcare facilities, compared to 28.2% in eastern states. Wido Geis-Thöne, IW’s study author and family economist, argues that supporting this smaller cohort requires greater staffing, inevitably increasing costs. He suggests that the lower utilization rates in western states contribute directly to their reduced spending. The implication is that a lack of accessibility to early childhood care in the west perpetuates a cycle of lower investment and potentially limits opportunities for those families.
Beyond core childcare spending, the study also assessed net expenditures for child and youth welfare. Bremen emerges as the leader in this regard, allocating €2,657 per minor, followed by Berlin (€1,969), Saxony-Anhalt (€1,829) and Brandenburg (€1,827). Conversely, Bavaria (€1,082), Baden-Württemberg (€1,172) and Thuringia (€1,398) dedicate the fewest resources to child and youth welfare.
The findings have sparked calls for corrective action, particularly targeting Baden-Württemberg and Bavaria. Geis-Thöne concludes that these states “could and should” increase their investments in both childcare and child and youth welfare overall. He specifically advocates for making early childhood care, especially for children under three, more accessible and attractive in these states, a policy shift that would likely require considerable budgetary reallocation and a rethinking of regional social priorities. The issue raises fundamental questions about the equitable distribution of resources within Germany and potential long-term consequences of these regional disparities in early childhood development.
