After the new daycare funding model was initially introduced to criticism, the city now also plans to eliminate the meal subsidy for childcare facilities.
Munich: Parents Will Soon Have to Pay More for Daycare
This is according to a proposal for the Child and Youth Welfare Committee. A report by the “Süddeutsche Zeitung” (“SZ”) states that approximately 275 daycare centers would be affected, meaning parents would have to pay higher meal fees in the future. The Social Services Department itself admits that cutting the subsidy “will lead to higher meal prices.” The switch to the new funding model has already placed a greater financial burden on many families.
Since its introduction last year, the number of applications for economic youth welfare assistance has risen sharply—from 1,600 cases in May 2024 to 5,500 in June 2025, according to the “SZ” report. The costs for the city have tripled, according to the Social Services Department—from €19.5 million to €60 million.
CSU and Free Voters Criticize “Cost Explosion”
The faction of the CSU and Free Voters refers to a “cost explosion in economic youth welfare assistance” and opposes the planned cut. “We cannot support another additional burden on families through meal fees,” says city councilor Alexandra Gaßmann (CSU). The new funding model has already “led to great uncertainty and increased expenses for childcare.”
Background: New Funding Model Since 2024
The city introduced the new Munich daycare funding model in September 2024. Prior to this, the original model had been declared unlawful by a court ruling. Since then, a so-called deficit model has been in place, which covers the actual expenses of daycare centers. The lunch subsidy—previously €64 per child per month—will be eliminated as of January 1, 2026. In total, there are approximately 1,100 independent and private daycare centers in Munich, 590 of which have joined the new funding model.
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