Child benefit is to be increased next year. However, the exact amount depends on the subsistence level report, which will not be presented until autumn.
Federal Finance Minister Christian Lindner has promised an increase in child benefit next year. “We have to wait for the subsistence minimum report in the fall to find out the exact amount,” said the FDP politician to the Germany editorial network (Thursday). Child benefit has already been “increased very sharply and disproportionately” in 2023 in order to relieve the burden on families. “That was a great success. That’s why the next increase isn’t due until 2025.”
Together with an increase in child benefit, there will also be a further increase in the basic allowance and the child allowance in wage and income tax in 2025, Lindner announced.
At the same time, the finance minister reiterated his demand to retroactively increase the basic allowance and child tax allowance. This is necessary for constitutional reasons. “Unfortunately, this has so far been blocked by the SPD and the Greens,” said the FDP politician.
Discussion in the traffic light coalition
There has been a discussion about child benefit and child allowances in the traffic light coalition for a long time. Lindner wants to increase the tax allowance for children without increasing child benefit at the same time. The SPD considers this to be unfair because it would only provide relief to families with high incomes. For families with lower incomes, however, child benefit is crucial; they do not benefit from the child allowance. The FDP points out that with the increase in the child allowance it is calling for, only the increase in child benefit from 2023 should be tax deducted.
Parents automatically receive either child benefit or the income tax allowance for children. The tax office checks what is more advantageous for you. The allowance is often only worthwhile for higher incomes. The tax allowance was already increased from 6,024 euros to 6,384 on January 1st and, according to the Finance Ministry’s plans, should increase retroactively to 6,612 euros. Child benefit increased to a uniform 250 euros per month per child in 2023.
Source: Stern
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