Press release: Adapting parental allowance to the realities of family life

AGF

On International Family Day, the associations united within the Association of German Family Organisations (AGF) are calling for the reform of parental allowance announced in the coalition agreement to be implemented soon. Above all, there is an urgent need to restore the benefit’s purchasing power so that it is once again in line with the realities of family life. Furthermore, a ‘fathers’ leave’ scheme must be introduced, entitling fathers or second parents to two weeks’ leave following the birth.

The AGF welcomes the fact that a reform of parental allowance is enshrined in the coalition agreement. It is now crucial that a substantial increase in parental allowance be implemented swiftly. It emphasises that, since its introduction in 2007, parental allowance has been a key family policy instrument for supporting young families and promoting an equal sharing of paid work and care responsibilities between partners. However, the level of benefits has not been adjusted since its introduction, with a minimum amount of 300 euros and a maximum of 1,800 euros, even though cumulative inflation has since significantly reduced the original purchasing power – by 40.9 per cent by 2024. A corresponding adjustment would raise the lower limit from 300 to 423 euros and the upper limit from 1,800 to 2,535 euros. Without this adjustment, parental allowance is becoming increasingly ineffective in the face of rising living costs.

Furthermore, it is of great importance to also introduce ‘paternity leave’, to which fathers, second parents or, in the case of single parents, a trusted person, are entitled two weeks after the birth. This would reflect the fact that the involvement of fathers in early childcare and parenting tasks is expressly desired by both the fathers themselves and society at large, and would help to establish a close father-child bond at an early stage. Furthermore, Germany would thereby comply with the European Work-Life Balance Package.
To mark International Family Day, family organisations emphasise that parental allowance no longer reaches many families in the way it was originally intended. To ensure it has an impact and to maintain parental allowance as a key pillar of support for families, the AGF calls in particular for:
a significant increase in parental benefit rates, which at least offsets the losses caused by inflation,
in particular, an increase in the minimum amount to support low-income families,
a regular adjustment mechanism for benefits to prevent future losses in purchasing power, and
the introduction of a 14-day ‘family start-up period’.