As of: March 8, 2024, 10:04 a.m
By: Max Schäfer
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A study shows: Basic child welfare is an effective means of combating child poverty.
The economy also benefits from this.
Frankfurt – Reduce child poverty, reduce bureaucracy: The traffic light coalition has a lot of hopes for basic child welfare, even if the specific financing has long been a point of contention for the government.
Two economists have now analyzed the effect of basic child welfare.
It will have positive effects for disadvantaged children and their families, is the result of a study published on Friday, March 8th by the trade union-affiliated Hans Böckler Foundation.
If around 1.5 million children received more benefits than before and the families' financial situation improved, child poverty would fall relatively quickly by almost two percentage points, explained the authors Tom Krebs from the University of Mannheim and Martin Scheffel from the University of Finance and Management in Bonn.
Basic child security reduces the risk of poverty for children shortly after its introduction - according to the study
As a result of basic child security, the proportion of children at risk of poverty fell by 1.8 percentage points shortly after its introduction.
By 2050, the proportion of children at risk of poverty is expected to fall from 21.6 percent to 18.6 percent.
In concrete figures that is 440,000 children.
The basic child benefit is intended to reduce the proportion of children at risk of poverty shortly after its introduction, according to a study by the Hans Böckler Foundation.
(Archive photo) © Sebastian Gollnow/dpa
Basic child security is also intended to simplify bureaucratic procedures.
It ensures that “the citizens’ debt to collect” becomes “a debt to be paid” by the state.
A mother affected by poverty also sees this as an advantage of basic child security.
“It is important that the specific design of the law actually facilitates access for eligible families and that all families actually receive what they are legally entitled to,” said Bettina Kohlrausch, scientific director of the Social Sciences Institute of the Hans Böckler Foundation.
In addition to the effect on child poverty: basic child security also has a positive effect on the economy
In terms of economic development, one can assume that employment in 2050 would be around 155,000 higher than without the introduction of basic child welfare.
Overall economic production could be 11.3 billion euros larger in 2050.
These positive effects could also lead to higher tax and social security revenues.
The two researchers concluded that basic child welfare is not only an effective instrument for combating child poverty, but is also good for the economy and public finances.
What figures do the authors of the study on basic child security expect?
In their model calculation, the scientists assume the financial parameters for basic child security currently contained in the federal government's draft law: a guaranteed amount of 250 euros per month is paid for each child.
For children from low-income families there is an additional amount of a maximum of 247 to 361 euros per month, depending on their age.
According to the coalition agreement, basic child security should exist from 2025.
The traffic light coalition passed it at the end of September 2023, but the Bundestag still has to pass the law.
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However, basic child security is also criticized.
Experts say that little of the promised money reaches the children.
The Arche founder therefore has different ideas in the fight against child poverty.
(ms/epd)