Berlin, 22 May 2026

The German government plans to cut parental allowance by 350 million euros starting in 2027 as part of broader budget savings, sparking debate about family policy.

The coalition government has agreed on budget cuts that include reducing parental allowance payments by 350 million euros annually, with Family Minister Karin Prien (CDU) tasked with finding additional savings of 150 million euros elsewhere in her department.

Currently, couples earning more than 175,000 euros per year combined are already excluded from receiving parental allowance. The new measures would further reduce benefits for eligible families.

Thuringia's Family Minister Katharina Schenk criticized the plans, calling them 'a fatal signal': 'Parental allowance is actually a labor market policy measure. And I believe, especially in these times, we can afford neither a declining birth rate nor the idea that women are less present in the labor market.'