Black-Red Coalition Plans to Scrap €25 Immediate Supplement for Poor Children

Background: From the Immediate Supplement to the Failed Child Basic Security Package

However, the reform failed. As a result, the political counterweight to the new black-red coalition's austerity course is now missing. The immediate supplement was meant to improve children's prospects — until the then-planned child basic security package could be realized. Following its collapse, the black-red coalition is sticking to the original line and now intends to scrap the supplement via the budget accompanying act (Haushaltsbegleitgesetz).

The child supplement, within which the immediate supplement has so far been included, amounts to up to €297 per child per month and is paid to low-income families for children under 25. Since July 2022, children, adolescents and young adults affected by poverty have received the monthly supplement. As part of the child supplement, the benefit has so far reached millions of minors.

At its introduction, the immediate supplement was €20 per month but has since been raised to €25. At the time, according to then-Federal Family Minister Lisa Paus (Greens), approximately 2.9 million children affected by child poverty were to benefit from the payment. Paus had pushed forward the ultimately failed child basic security package and, upon its introduction, described the immediate supplement as a first step toward better protection against child poverty.

Financial Impact and Austerity Package

According to the draft by the Finance Ministry, the financial effects work in opposing directions. The elimination of the immediate supplement is expected to generate annual savings of approximately €450 million for the federal government within the child supplement. At the same time, the draft projects additional expenditure of €150 million in the area of basic income support (Bürgergeld/Grundsicherungsgeld), because affected families would have to be additionally absorbed there.

The budget accompanying act is part of a larger consolidation package. The cabinet also approved higher taxes on alcoholic beverages, which, according to the draft, are expected to bring an additional €455 million into state coffers. The draft for the 2027 federal budget provides for rising expenditure of €555.4 billion, while subsidies to pension and health insurance are to be reduced.

Further Procedure and Political Reactions

According to the draft, the Climate and Transformation Fund is also set to receive fewer resources. The Finance Ministry justifies the austerity measures with the goal of consolidating the federal budget. The final decision on the budget accompanying act and the 2027 federal budget rests with the Bundestag and the Bundesrat.

The plans were first reported by the German Press Agency (dpa) from Berlin. When the Bundestag will vote on scrapping the immediate supplement was initially unclear. Criticism of the plans came promptly from associations and the opposition, who pointed to rising child poverty in Germany and the failed child basic security package.