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Child allowance: increase in sight, but who really benefits?

2024-01-31T10:39:30.211Z

Highlights: Child allowance: increase in sight, but who really benefits?. As of: January 31, 2024, 11:29 a.m By: Nico Reiter, Anna-Lena Kiegerl CommentsPressSplit The increase in the child tax allowance was already made in January - a further retroactive increase could soon mean more government support. SPD party leader Lars Klingbeil: “I think it is unfair to only relieve the burden on families with very high incomes.”



As of: January 31, 2024, 11:29 a.m

By: Nico Reiter, Anna-Lena Kiegerl

Comments

Press

Split

The increase in the child tax allowance was already made in January - a further retroactive increase could soon mean more government support.

Frankfurt – Is financial support for parents finally coming?

An increase in the child allowance and the child allowance is also being discussed.

At the beginning of the year, the allowance was increased from 6,024 euros to 6,384 euros, i.e. by 380 euros.

As the Finance Ministry, headed by the FDP, announced, this amount is to be increased again retroactively.

Then it should amount to 6,612 euros in order to adjust it to the increased child benefit.

The SPD in particular, but also the Greens, oppose this plan.

Further increase in the child tax allowance?

Who would get more support?

Families with very high incomes in particular would benefit from an increase in the child tax allowance.

The tax office checks annually whether the child allowance or child benefit is more advantageous for a family - only one of the two can be claimed.

The fact that the child allowance is more beneficial usually only applies to parents with higher incomes, but must be checked depending on the situation.

Everyone else, usually families with low or middle incomes, receive child benefit, which currently amounts to 250 euros per month and per child.

Who benefits from the increase in child benefit?

© Ute Grabowsky/Imago

Increasing the tax allowance would primarily benefit top earners.

You would then receive more support than before.

But that is exactly the point of criticism that the SPD, the Greens and social organizations are making.

SPD party leader Lars Klingbeil also emphasizes: “I think it is unfair to only relieve the burden on families with very high incomes.

The working middle class in particular, i.e. those who get up every day, work hard to earn their income and also look after their children, neighbors and the club, should be relieved.”

Critics of the increase in the child allowance are also calling for an increase in child benefit.

“That’s why it’s completely clear to me that families with small and medium incomes also have to get more this year,” emphasizes Klingbeil.

The SPD criticizes the planned increase in the child allowance and calls for an increase in child benefit

Michael Schrodi, the SPD's financial policy spokesman, shares this view.

He told

Bild

: “The SPD won’t go along with that.

There will be no majority for such plans from the Lindner house,” so an agreement seems complicated.

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Schrodi also brings up an increase in child benefit: “If there are 380 million for additional relief for the richest parents, then he also has the money for an increase in child benefit.” Which parents will ultimately actually receive more support, or whether all families will be relieved , remains unclear.

The editor wrote this article and then used an AI language model for optimization at his own discretion.

All information has been carefully checked.

Find out more about our AI principles here.

Source: merkur

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