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Child benefit reform 2025: More money for the child, less bureaucracy!
Find out which child benefit reforms are coming in Germany in 2025, how parents will benefit and what changes are planned.
Child benefit reform 2025: More money for the child, less bureaucracy!
Since January 1, 2025, a lot has changed for many families in Germany - and it's not just small things. According to nord24, child benefit will be paid out automatically in the future, which means that new parents no longer have to worry about applications. A welcome step in simplifying bureaucracy that the coalition partners CDU and SPD decided on as part of their reforms. What is particularly exciting is that child benefit and the child tax allowance are now more closely linked.
Parents currently receive 255 euros per child per month, and a further increase to 259 euros is planned for 2026. The official increase has already been decided and is part of a comprehensive plan to improve financial support for families. In addition, starting next year, the child allowance will also be increased to 9,600 euros annually. These adjustments ensure that families with less income will have a better living, as the child allowance for low-income families will also increase.
Measures against child poverty
However, increasing child benefit is only part of the measures that the federal and state governments are taking to combat child poverty. According to a press release from destatis, around 24% of children and young people in Germany are at risk of poverty or social exclusion. What is particularly frightening is that almost 2.1 million minors were at risk of poverty in 2023.
Those responsible want to help the affected families with a participation allowance of 20 euros in the education and participation package, which increases from the previous 15 euros, as well as further support for single parents. A central platform for digitally applying for social benefits is also planned in order to reduce the always annoying paperwork. These measures are necessary because poverty particularly affects children from families with low levels of education, as the figures show.
A new look at child benefit
Child benefit and the child allowance should correspond to each other in the future: Any increase in the child allowance automatically leads to an adjustment of the child benefit. Parents no longer have to worry about submitting applications on time - a relief that many will welcome. The federal government also plans to advance the discussion about higher child benefit amounts for the third and each subsequent child, which could bring additional improvements for many families.
In summary: From 2025, families can look forward to more money, without any annoying bureaucratic hassle, and the measures to combat child poverty send a positive signal for the future. How these changes will specifically affect the living situation of families remains to be seen, but the signs point to improvement. North24, citizen money and destatis keep us up to date.