Kindergeld reform: Minister suggests cutting parental benefit months to raise payouts and boost father involvement
Politics

Kindergeld reform: Minister suggests cutting parental benefit months to raise payouts and boost father involvement

Federal Family Minister Karin Prien (CDU) stated that she views shortening the maximum duration of parental allowance as a viable option, in exchange for increasing the monthly benefit payments. Speaking to Politico, the minister said she could potentially support a plan that reduces the overall duration while simultaneously raising the replacement rate, as well as adjusting the minimum and maximum monthly amounts. Currently, couples are eligible to receive parental allowance for a total of 14 months, which requires at least one parent to take two months. The current replacement rate-the actual amount of the allowance-is 65 percent of net income, with a minimum benefit of €300 and a maximum of €1,800. Furthermore, Prien suggested that fathers should be required to take more than two months of parental leave so that couples can fully utilize the total duration of the allowance. She added that this could be an idea for making concessions, “at least if one wants to receive the full parental allowance”. This idea aligns with arrangements between the Union and the SPD, noting that the coalition agreement, which serves as a crucial basis for her considerations, outlines a desire to promote greater partnership between parents.