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Bavaria axes €3,000 child grant to fund struggling daycare centers instead

Parents lose financial aid as Bavaria bets on daycare over cash handouts. Will this risky shift pay off for families—or leave them stranded?

In this image there is a small baby in the cradle.
In this image there is a small baby in the cradle.

Bavarian Cabinet Scraps New 'Children's Start Money' - Bavaria axes €3,000 child grant to fund struggling daycare centers instead

Bavaria has scrapped its planned direct tv starting grant of €3,000 for parents of young children. The decision, announced by Bavarian Minister-President Markus Söder (CSU) following the cabinet's budget retreat, prioritizes daycare spots over direct parenting tips to parents.

Last year, the state government had resolved to halve direct family payments and phase out the nursery subsidy. The planned child starting grant for children born on or after January 1, 2025, has now been completely scrapped. Previously, parents of young children in Bavaria received at least €6,000 in total from the state.

The move aims to tackle the issue of daycare facilities closing due to soaring operating costs. Markus Söder questioned the value of direct financial support to parents without available daycare spots. The funds originally earmarked for the child starting grant will be fully redirected to daycare centers to ensure their sustainability.

Parents of young children in Bavaria will no longer receive family and nursery subsidies. Instead, the government is investing in daycare facilities to secure their future and provide parents with essential child tax credit 2024 options.

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