Germany’s Finance Minister Lars Klingbeil and Social Affairs Minister Bärbel Bas, both from the SPD, want to abolish the requirement to apply for child benefits. This is outlined in a draft law for which the Finance Ministry initiated the interministerial consultation process on Thursday. The ministry referred to a corresponding commitment in the coalition agreement between the Union and the SPD, as well as to the related recommendation from the Commission on Social State Reform.
“We want a modern state that is there for the people,” Klingbeil said. “That is why we are relieving families and cutting bureaucracy.” This would allow parents “to focus fully on their baby after birth instead of dealing with unnecessary paperwork.” “We work every day to make people’s lives better,” Bas emphasized. “With the automatic payment of child benefits, we are relieving parents of bureaucracy,” she added. The measure, she said, would make “life a bit easier for young families.”
According to the Finance Ministry, a prerequisite for automatic payment is that the Federal Central Tax Office has a bank account on record. Eligibility criteria will still be reviewed by authorities. In cases of doubt, payments will initially not be issued. The plan foresees that starting in March 2027, automatic payments will first apply to newborns whose parents already have an older child. Birth notifications will be forwarded by registry offices to the Federal Central Tax Office, which will then assign the newborn a tax identification number.
By the end of 2027, automatic payments should also apply to all first-born children, provided at least one parent is employed in Germany and one parent shares a household with the child. If these conditions are not met, parents will continue to receive a government welcome letter and may apply for child benefits as usual.