Child benefit revolution: from 2025 increases without application for parents!

Child benefit revolution: from 2025 increases without application for parents!

On June 8, 2025, the federal government is planning significant changes in the area of ​​financial support for families. The focus is on the new regulations on child benefit, which were initiated by the current government under Chancellor Friedrich Merz (CDU). As part of these reforms, the previously introduced basic child protection will be completely overturned.

A central element of the new regulations is that parents will no longer have to apply for child benefit in the future. Instead, they automatically receive a child benefit notice after the birth of a child. This is intended to significantly reduce bureaucratic effort and provide better relief for low-income families.

Planned increases in child benefit

The monthly child benefit is to be increased to 255 euros per child on January 1, 2025. This measure will be accompanied by a further increase of 4 euros on January 1, 2026, so that the child benefit will then rise to 259 euros per child. One notable change is that these increases will occur automatically, without the need for a separate application.

In addition, the participation fee for the education and participation package (BuT) will be increased from 15 to 20 euros. The aim is also to introduce a children's card for children entitled to child benefit in order to further improve financial support.

Cuts and challenges

Despite these positive developments, there are also critical voices and potential cuts that could particularly affect families with children abroad. The CDU plans to increase child benefit and the child allowance, but cuts will be made for certain groups. Parents whose children live in other EU countries, such as Poland or Romania, would be particularly affected. The CDU chairman Friedrich Merz has announced that child benefit payments should be adjusted to the cost of living in the respective country.

In 2023, around 525.7 million euros in child benefit were transferred to foreign accounts, with 40 percent of it going to Poland. This adjustment is intended to help achieve savings in the German state budget, although the exact criteria and amount of the cuts have not yet been determined. Experts warn of the high level of bureaucratic effort that could be associated with the introduction of such a system.

The plans are currently in the phase of coalition negotiations between the CDU/CSU and SPD, so a final decision is expected in the near future. In addition, parental allowance will be reduced from April 2025, which could lead to further financial changes for families. Parents are advised to find out about possible financial bottlenecks early on.

The reforms relating to child benefit therefore represent an important step towards better financial support for families, while at the same time challenges and uncertainties remain for certain groups. For more information about these changes, visit Ruhr24 as well as Finanz.de.