Widespread resistance is emerging against the German federal government's planned parental allowance (Elterngeld) reform. "I reject cuts to children and families," Jasmina Hostert, the SPD's family policy spokeswoman, told Handelsblatt on Thursday. "Families need stability and reliability now more than ever."
Federal Family Minister Karin Prien (CDU) must save 500 million euros from her budget. To reduce spending, Prien is tasked with reforming the parental allowance system, according to the cabinet decision on the federal budget.
Parental allowance (Elterngeld) is a government benefit for mothers and fathers who want to stay home or reduce their working hours after the birth of a child to care for their newborn. The system provides financial compensation for income that falls away after birth, helping to secure the family's financial foundation.
The benefit is available in three variants: basic parental allowance (Basiselterngeld), extended parental allowance (ElterngeldPlus), and partnership bonus (Partnerschaftsbonus), which can be combined based on family circumstances.
Parents can receive parental allowance for a minimum of 12 months and a maximum of 14 months when both partners take time off. The amount depends on the previous net income, ranging from a minimum of 300 euros to a maximum of 1,800 euros per month.
Elke Hannack, deputy chairwoman of the DGB trade union confederation, also sharply criticized potential savings measures. "Anyone who is now considering cutting parental allowance has not understood the signs of the times and is acting contrary to the coalition's promise to put families at the center and strengthen equal participation of women," she said.
Economists also view the cuts critically. "Based on the current situation, I see hardly any significant savings potential for parental allowance without fundamentally changing its character," Wido Geis-Thöne from the Institute of the German Economy (IW) told Handelsblatt. At the end of April, the Federal Statistical Office presented figures showing that fewer babies were born in Germany last year than at any time since 1946.
DIW economist Katharina Wrohlich commented on parental allowance reform: "Given declining birth rates, cuts to one of the central family policy benefits would be the wrong signal."
The CDU/CSU parliamentary group suggested cutting elsewhere in the family budget first. "Instead of parental allowance, the project funding of the Family Ministry could also be examined," Anne König (CDU), the Union parliamentary group's family policy spokeswoman, told Handelsblatt.
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