Former Federal Minister for Family Affairs, Franziska Giffey (SPD), has strongly cautioned against potential reductions to the parental allowance (Elterngeld). Addressing the newspapers of the Funke media group, Giffey noted that Germany currently has its lowest birth rate since 1946, stating that discussing cuts to the allowance in this context would certainly not boost birth numbers.
Giffey, who served as the Minister for Family Affairs from 2018 to 2021 and is currently a Senator for Economics in Berlin, pointed out that the parental allowance is not merely a benefit for families; it also functions as a crucial labor market tool. According to her, it helps reduce career breaks, especially for women, promotes a better balance between family life and work, and facilitates re-entry into the job market-a dimension she feels is being overlooked in the ongoing debate.
Instead of cuts, Giffey advocated for a parental allowance reform that would allow for a fairer, more balanced distribution of caregiving responsibilities. She highlighted that a significant majority of allowance recipients-74 percent-are women. “Greater partnership within the parental allowance system would not only benefit families but also our economy and the full utilization of all our potential” she added.
Wolfgang Kubicki, the designated chairman of the FDP, shares the critique of possible cuts. Speaking to the Funke media group, he expressed great surprise at how easily the coalition is accepting cuts for families while making no movement in other areas, such as the mutual insurance provisions for family members or the parental allowance. He stressed that these actions send completely wrong signals to young families where both parents are employed, adding that families should, above all, be supported.
Britta Altenkamp, Chairwoman of the Future Forum for Family (ZFF), considers the debate over cuts a “fatal signal” to families. She lamented that while the decline in birth rates and societal uncertainty are widely mourned, the very benefit designed to secure families during this sensitive period is being weakened. Altenkamp also pointed out that the state’s wage replacement benefit has not been substantially adjusted since its introduction in 2007. She argued that instead of further reductions, a reform is long overdue, specifying that this should include more incentives for an equal split of caregiving duties, such as a higher minimum parental allowance and a significant expansion of partner months. She criticized the federal government for reneging on its promise to implement such changes.
These concerns come as the budget is being compiled, with Family Minister Karin Prien reportedly planning to cut approximately 350 million euros in her sector related to the parental allowance.
