Germany is set to automatically pay child benefit to parents following the birth of a child, removing the need to submit an application. The federal cabinet approved a draft law on Wednesday aimed at cutting bureaucratic hurdles for families. The SPD-led Federal Finance Ministry described the move as "a great relief for families in the period after birth, an important building block for reducing bureaucracy and a further step towards a modern state."
The automatic payment of child benefit was agreed upon in the coalition agreement and follows a recommendation by the Commission on Social State Reform. The legislative change implements the so-called Once-Only Principle, under which data needs to be provided to authorities only once. The law is set to come into force on 1 January 2027.
The Federal Finance Ministry estimates that around 300,000 initial applications per year will no longer need to be filed. Finance Minister Lars Klingbeil (SPD) said the application-free child benefit was a further step towards "a modern state that is there for the people." "We want parents to be able to focus entirely on their baby in the exciting time after birth, instead of dealing with unnecessary paperwork," he added.
Federal Social Affairs Minister Bärbel Bas (SPD) said the government wants to make the welfare state more transparent, more efficient and closer to citizens. "As the first of the measures proposed by the Social State Commission, we are now implementing application-free child benefit," she said. Young parents in particular often have their hands full and no time for bureaucratic procedures. "With application-free child benefit, we are relieving them of this burden," Bas added.
Child benefit is one of the most important financial support measures for families in Germany. It is paid monthly as a tax credit by the Family Benefits Office of the Federal Employment Agency. Since 2024, parents have already been able to use pre-filled application forms for child benefit. Following the birth of a child, they receive a welcome letter with a QR code from the Family Benefits Office.
The new system will be introduced in two stages over the course of 2027. In the first stage, expected in March 2027 according to the Finance Ministry, automatic payments will initially begin for newborns whose parents already have at least one older child. In the second stage, expected in November 2027, child benefit will also be paid automatically for first children without any application required.
The conditions for automatic payment are that at least one parent lives together with the child in Germany and that an IBAN bank account number is on file for that parent.
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