Minister of Education Karin Prien (CDU) has confirmed that budget consolidation for 2027 will necessitate cuts to the Parental Allowance (Elterngeld). Speaking to the “Welt” newspaper, she pledged her commitment to adhere “solidarily” to the savings measures agreed upon by the black-red coalition committee, while promising to work toward “constructive solutions”. Prien maintained that responsible politics for both families and future generations requires sound budgetary consolidation, even though she pledged to fight “for every cent” in the sectors of family and education.
According to the coalition’s agreed budget points, Prien’s department must achieve savings exceeding €500 million, with €350 million of that earmarked specifically for the Parental Allowance. She stated that the exact way these savings will be implemented requires negotiation between the government and various political factions.
However, she outlined several areas where flexibility exists. Regarding the duration of the benefit, Prien affirmed that the entitlement must secure at least the first twelve months, as the legal right to daycare care (Kita) only begins after that period. Currently, the basic Parental Allowance runs for 14 months, provided the father takes a minimum of two months. Other potential points of adjustment include the shared nature of parental months for parents, the total benefit amount, and the wage replacement rate.
While she acknowledged their necessity, Prien advised against reducing the benefit amount, noting that it has never been increased since its introduction. She argued that finding a model to improve the allowance despite spending constraints would signal strong ongoing support from the country to its families. Additionally, she pointed out the demographic argument: decreasing birth rates reduce the need for overall household spending.
The Parental Allowance is paid based on previous net monthly income, with a minimum of €300 and a maximum of €1,800. The benefit is lost if the taxable income for couples or single parents surpasses €175,000-a threshold previously lowered by the coalition partners from €200,000. Prien voiced “significant concerns” about making further changes to these income ceilings, emphasizing that it is vital that young, well-educated women continue to have children. She stressed that the Parental Allowance was deliberately designed as a family benefit and an investment in the potential of working women.
Prien concluded by stressing the enduring importance of excellent childcare, reliable full-day care, and good schools. In her view, “good family policy is therefore always also good educational policy”. Her comments provided historical context, noting that the 2007 coalition agreement planned to increase the minimum and maximum benefit rates-both of which have remained stable since the allowance’s introduction-and to incentivize deeper male participation. For a historical reference, the predecessor benefit (Erziehungsgeld), introduced in 1986, was worth 600 DM monthly.