Child Poverty in Germany – New Regulations Introduced to Provide Financial Support
The German Government has announced their new financial support regulation for families and students in Germany. These new regulations are aimed to support families on lower incomes. The German government has made it clear that they are focused of fighting the increase of child poverty in Germany.
Time will tell as previous regulation changes have not shown any effect. The Düsseldorf-based Institute of Economic and Social Research (WSI) highlighted Germany’s bitter paradox that despite the country’s export-led boom, poverty looms large for nearly one in six of its 82 million residents, especially among people with “migratory backgrounds.”
The statistical poverty threshold is defined as a household having to make do with only 60 % of the median monthly income as measured across households. According to the study a single person household is exposed to poverty risk when the net income undercuts €969. For a four-person family, including two small children, the threshold is €2,035 net per month.
In its latest report, based on 2017 micro-census data yet unpublished by federal statisticians, the WSI puts the poverty risk quota for Germany at 15.8 percent. We must wait until the next published report to see if the changes made in Germany since 2017 and these new changes will make a difference to the dangers and long term damage to society as a whole caused by child poverty.
The most important family related changes taking effect in August 2019 are:
- New School Equipment support: Single parents receive €150 (£137.00) (previously €100.00) towards their school equipment purchase for their child and it’s payable each school year.
- New “Kindergarten” payments: Parent’s which receive accommodation allowance (“Wohngeld”) and “Kinderzuschlag” do not have to pay for the children’s Kindergarten costs anymore.
- New School Trip vouchers/Tutoring support: The application forms for the financial support for children’s school trips or necessary tutoring are easy to fill out.
- New Student Loan payments (“BAföG”): Current student’s loan payment of €735 per month will increase in 2020 to €861 (£781.00) pcm. The repayment structure changed as well and is aimed to be fairer for students having fewer financial resources.
- New increased Apprenticeship payments: From 1st August 2019 the Apprentice in Germany will receive more benefit which is the so called “Berufsausbildingsbeihilfe”; the payment increases from € 622 pcm to €716 pcm (£650.00).
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If you would like more details on this or want to discuss your family law matter, please do not hesitate to contact James, Frank, Evelyn or Paul. Paradigm Family Law offers a free initial consultation and our fixed fee solutions cover financial proceedings from start to finish. You can call us on 01904 217225 or email us to [email protected].