Why Finance Minister Linder stopped basic child welfare

Christian Lindner

The FDP leader also raises concerns about the content of basic child welfare.

(Photo: dpa)

Berlin On Wednesday, the basic child welfare plan planned by Federal Family Minister Lisa Paus (Greens) did not make it into the cabinet. Federal Finance Minister Christian Lindner (FDP) has now explained which points are still controversial for him.

Lindner rejects the permanently higher benefits for children of asylum seekers as a result of the introduction of basic child welfare. “The SPD and the Greens want to permanently pay asylum seekers 20 euros more per child per month – I don’t support that,” said the FDP leader of the “Rheinische Post”.

The current standard rates are appropriate, “and we should not send the wrong signals, especially with the Asylum Seekers Benefits Act,” said Lindner.

In the case of basic child security, the major social policy reform of the traffic light coalition made up of the SPD, the Greens and the FDP, child benefit, the child allowance, the citizen’s benefit and the benefits from the education and participation package are to be brought together. The aim is also to simplify the application and payment process.

But the project has been debated in the traffic lights for months. First it was about financing. Paus demanded twelve billion euros, Lindner only planned two billion euros in the medium-term financial planning. The dispute escalated when Paus initially blocked Lindner’s Growth Opportunities Act in the cabinet in mid-August, which provided for tax relief for the economy.

Now there are apparently also content-related controversies regarding basic child welfare. “It was important to me that there were no expansions in basic child welfare benefits,” Lindner told the “Rheinische Post”.

Quarrels between ministries

The Family Ministry said that the relevant regulation, which provided for a permanent improvement in benefits for children of asylum seekers from 2025, had been deleted from the draft law. The Federal Ministry of Labor of Hubertus Heil (SPD) had previously pushed for the passage to be included. The Ministry of Finance then stopped the cabinet decision planned for Wednesday on Tuesday.

Lisa Paus

The Federal Minister for Family Affairs would like to see more extensive benefits for families than Lindner.

(Photo: dpa)

The Ministry of Family Affairs said that the labor and finance departments would now have to come to an agreement. Minister Paus sees no reason to include the issue of the Asylum Seekers Benefits Act in the basic child welfare provision. However, the parliamentary groups said that payments for the children of asylum seekers were an important concern for the Greens.

Lindner also expressed concerns with regard to citizens’ money. It is still controversial here how the transfer of child benefit should be regulated. Citizenship benefit for parents would therefore only be paid out once basic child welfare has been approved for the children. The reason is offsets between the two support services, which can lead to cuts in citizens’ benefits.

Lindner sees no “misery”

Paus’ ministry points out that there are only around 20,000 cases every year. If the child benefit transfer were canceled, 150 million euros in bureaucratic costs could be saved – even if there would then be increased payments of citizen’s benefit.

“Nothing significant should change in the gap between wage income and social benefits,” said the FDP leader to the “Rheinische Post”.

A family of five who receives citizen’s benefit already receives a good 37,000 euros a year from taxpayers. “That’s not much for five people, but it’s not misery,” emphasized the FDP leader.

“Higher cash benefits would not be perceived as fair by families who work for low incomes,” added Lindner. “There is no way around the fact that we can only end poverty through education and work.” There are still “too many people who could work but are not working”.

We heard from the Family Ministry that it was strange that the FDP spoke out against reducing bureaucracy costs. According to current plans, the cabinet is now scheduled to approve the further amended bill on September 27th.

More: Basic child security: The state is unable to act

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