For families across Germany, parental allowance or Elterngeld has been a crucial safety net since 2007. Now, as part of the 2027 budget consolidation, the benefit could be up for change. Family Minister Karin Prien (CDU) says she will fight "for every cent" but admits tough decisions lie ahead.
Prien (CDU) is preparing to make significant cuts to her ministry's budget as part of Germany's 2027 fiscal consolidation. According to the savings targets agreed upon by the coalition committee, Prien's department must trim more than €500 million in spending, with €350 million of that coming directly from parental allowance, Germany's key income support programme for new parents.
Speaking to the newspaper Welt (Friday edition), Prien said she would act in solidarity with the decisions taken by the coalition committee. "Responsible policy towards families and future generations also means a policy that consolidates the budget," she stated.
She added that the specifics of how savings would be achieved would be negotiated within the government and with the parliamentary groups, and that she intended to fight "for every cent" in the family and education sector.
Prien identified several areas where adjustments could be made to achieve the required savings from the parental allowance programme.
Basic Elterngeld currently runs for 14 months, provided at least two of those months are taken by the father. Prien indicated that this could be reduced but not below 12 months, since the legal entitlement to a childcare place only begins after a child turns one. "It is clear to me: because the legal right to a daycare place only begins after twelve months, parental allowance must cover at least these twelve months," she said.
Currently, couples can split 14 months of basic Elterngeld between themselves, with each parent able to claim between 2 and 12 months. Changes to how these months are divided between mothers and fathers are being considered as one of the levers for savings.
The minimum payment is currently €300 per month and the maximum is €1,800 per month, both unchanged since the programme was launched in 2007. Prien advised against reducing the amount, noting that Elterngeld has never been increased since its introduction.
Elterngeld currently covers 65 percent of a parent's pre-birth net income in most cases. Adjustments to this percentage are among the options being considered by the minister.
Prien was clear about what she would not support. She advised against lowering the amount of parental allowance paid to families, pointing out that the benefit has never been increased since it was first introduced. "I would not recommend that we reduce the amount.
The parental allowance has never been increased since it was introduced. If we find a model that allows us to still improve something despite the budget constraints, it would signal to families in our country: we support you," she said. Declining birth rates in Germany also mean that fewer families are claiming the benefit, which naturally reduces spending, Prien noted.
The minister also expressed strong reservations about tightening income thresholds for eligibility. "It is important to us that young, well-educated women continue to have children. That is why we must be careful not to change the character of this benefit," she warned. The parental allowance, she stressed, was deliberately designed as a family benefit and an investment in the potential of working women.
The coalition agreement between the CDU/CSU and SPD had originally set out plans to raise both the minimum and maximum parental allowance payments. The minimum of €300 per month and the maximum of €1,800 per month have remained unchanged since the programme was launched in 2007.
The agreement also included provisions to incentivise greater involvement of fathers in childcare through dedicated solo parenting months. Prien emphasised that beyond parental allowance, reliable childcare, full-day schooling, and quality schools were equally essential for supporting families in Germany.
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