Munich – Bavaria is scrapping the childbirth allowance that was originally planned for introduction at the start of the new year. Consequently, parents of young children will not only lose the existing family allowance and the nursery group supplement but will also not receive the planned one-time payment of 3,000 euros.
Instead, the freed-up funds will be allocated entirely to childcare facilities and their operational costs, as Minister-President Markus Söder (CSU) announced following the cabinet’s budget meeting. This step aims to prevent the risk of kindergartens closing due to excessively high operating expenses. He noted that the benefit of direct cash payments to parents is lost if there are no available childcare spots. Therefore, the decision was made to direct all funds “into the system.”
Söder: “A Kindergarten Spot is More Important Than a Direct Payment”
Söder emphasized that the availability of kindergarten spots is a crucial factor for the region’s competitiveness. However, operating costs have continued to rise, requiring more funding for the system. At the same time, budgetary goals must be met. Thus, with a heavy heart, the principle was adopted: “A kindergarten spot is more important than a direct payment.”
Faced with a constrained budget, the state government had already made the fundamental decision last year to halve the direct family allowance payments – which existed only in Bavaria. This decision was finalized during the summer. Simultaneously, the so-called nursery group supplement, which helped families offset kindergarten costs, was abolished. Until now, parents of young children received a total of at least 6,000 euros from the state. The funds freed up by these cuts are now intended for childcare facilities.
According to a previously adopted cabinet decision, a new childbirth allowance was supposed to replace these payments starting next year. It was intended for all children born from January 1, 2025. The payment was scheduled to be made once the child reached their first birthday. Parents of twins or multiples would have received 3,000 euros per child. This planned new benefit has now also been canceled.
Source: dpa
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