The governing coalition in Germany has decided to increase the child allowance to 272 euros per month until 2028.

The governing coalition in Germany, made up of conservatives and social democrats, has reached an agreement to increase the child allowance (Kindergeld) to 272 euros per month, in two stages, by 2028. Currently, the allowance is 259 euros per month, and in 2024 it was 250 euros.

The government will simplify procedures by eliminating the need for many families to submit applications. The new system will be implemented in two phases, starting in March 2027, when parents with already one child will automatically receive the allowance for a newborn, and from November 2027, parents of the first child will also benefit from the same facility. Additionally, the tax deduction for children will increase, but some families may lose other benefits, such as housing assistance, starting in 2027.