Education Minister Karin Prien (CDU) has confirmed that cuts to the Parental Allowance (Elterngeld) will be required as part of the consolidation of the 2027 budget. Speaking to the “Welt” she stated that while she remains “solidary” with the savings measures approved by the black-red coalition committee, she will fight hard for the funding of family and education, calling it essential for responsible governance toward future generations.
According to the binding points established by the coalition committee, Prien’s ministry must achieve savings exceeding 500 million Euros, with 350 million Euros of this expected reduction coming from the Parental Allowance. She noted that achieving these targets will require negotiations within the government and across the various political factions.
However, she highlighted several potential areas for adjustments. Sources of savings include the eligibility period for the benefit, the parental involvement required (such as ensuring a minimum of two months are taken by the father), the overall benefit level, and the corresponding wage replacement rate.
Prien strongly advised against lowering the benefit amounts, stressing that the Parental Allowance has never been increased since its introduction. She argued that maintaining a robust, yet adjusted, model would signal support to families across the nation. Furthermore, she pointed to declining birth rates as a demographic factor that inherently reduces household financial needs.
Currently, the benefit is paid based on the previous net monthly income, with a set minimum of €300 and a maximum of €1,800. The benefit claim ceases if the household income exceeds €175,000 for couples and single parents, a reduction from the former €200,000 threshold implemented by the Ampel coalition.
Despite the budgetary pressures, Prien expressed significant reservations about revisiting the income limits, arguing it is vital to ensure that young, well-educated women remain motivated to have children. She emphasized that the allowance must retain its foundational character as a direct investment in the professional potential of women. She added that strong educational institutions, reliable full-day care options, and quality childcare are equally fundamental pillars of sound family policy.
For context, the original coalition agreement had intended to raise both the minimum and maximum benefit rates, which have remained constant since the allowance’s introduction in 2007, and to provide incentives for greater paternal participation. Historically, when a predecessor payment (Erziehungsgeld) was established in 1986, the monthly amount was 600 D-Marks.
