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Soon over 100 euros more child benefit? Social associations are demanding a huge increase

2024-01-30T05:39:01.272Z

Highlights: Soon over 100 euros more child benefit? Social associations are demanding a huge increase. The FDP is still against the project. The SPD thinks this is unfair because it would mainly relieve the burden on high-earning households. Families with low and middle incomes do not benefit from the allowance; they receive child benefit. In return, however, the FDP emphasizes that child benefit has already been increased to 250 euros in 2023 and that taxes should now be added when the child allowance is increased.



As of: January 30, 2024, 6:24 a.m

By: Anna-Lena Kiegerl

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In addition to the child allowance, child benefit should also be increased.

This is what the SPD, Greens and social organizations are demanding.

But the FDP is against the project.

Frankfurt – Child benefit should be increased in addition to the child allowance.

At least that's what some social associations, as well as the SPD and the Greens, are calling for.

The FDP is still against the project.

The liberal party under Christian Lindner plans to increase the child allowance without also increasing child benefit.

Drastic increase in child benefit?

Child tax allowance mainly relieves the burden on high earners.

The SPD thinks this is unfair because it would mainly relieve the burden on high-earning households.

Because: Families with low and middle incomes do not benefit from the allowance; they receive child benefit.

In return, however, the FDP emphasizes that child benefit has already been increased to 250 euros in 2023 and that taxes should now be added when the child allowance is increased.

Child allowance or child benefit?

Parents receive either child benefit or child tax allowances for their children.

During the annual income tax assessment, the tax office checks whether allowances for children or child benefit are more worthwhile for parents.

In 2024, the child allowance was increased by 360 euros and is now 6,384 euros for both parents, but according to Lindner's plans it should be increased again retroactively.

In addition, there is the allowance for care and upbringing or training needs of 2,928 euros.

Source: Federal Ministry for Family, Senior Citizens, Women and Youth

Increase in child benefit: first to 300 euros, then to 377 euros

However, social associations see things completely differently.

They sharply criticize the Liberals' plans: "The increase in the tax allowance for children results in a relief of 377 euros per month for top earners, while families with middle and low incomes are left empty-handed because, according to Lindner, child benefit should remain at 250," said the general manager of the Paritätischer Wohlfahrtsverband, Ulrich Schneider, the RND.

For this reason he is calling for a gradual increase in child benefit.

“It would therefore only be consistent, solidarity-based and fair to set child benefit at 300 euros in a first step and increase it to 377 in the future,” says Schneider.

If the general manager of the Paritätischer Wohlfahrtsverband, Ulrich Schneider, has his way, child benefit could soon increase by more than 100 euros.

(Symbolic image) © Imago/imagebroker

Verena Bentele, President of the social association VdK, fears that increasing the child tax allowance could widen the gap between rich and poor, which is why child benefit must also increase.

However, real justice would only be brought about by a system change with basic child protection.

Daniel Grein, Federal Managing Director of the Child Protection Association, also demands this.

He also emphasizes the need for basic child security, which would eliminate the coexistence of child tax allowance, child benefit and receipt of social benefits.

A poverty researcher is also calling for the child tax credit to be abolished.

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Dispute over child allowance and child benefit: “Every child must be worth the same to the state.”

“Every child must be of equal value to the state.

That is why child benefit and child tax allowance must be adjusted to each other in the future,” explains the chairwoman of the German Social Association (SoVD), Michaela Engelmeier, to the RND.

Michael Schrodi, financial policy spokesman for the SPD parliamentary group, suggests how the increase in child benefit could be financially managed.

Tax relief for top earners could be withdrawn in order to increase child benefit.

He refers to a Federal Council initiative by the state of Hamburg, which proposes to retroactively cap inflation compensation for higher incomes.

This is how Schrodi explains his proposal to the RND and explains: “The strong shoulders can be put under greater strain in favor of the middle of society.”

Source: merkur

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