Fewer Parents in Berlin and Brandenburg Collecting Parental Allowance Post-2024
- Fewer individuals receiving parental benefits in Berlin and Brandenburg.
Single parents and fathers in Berlin and Brandenburg received less parental allowance in the year 2024. In Berlin, around 78,000 individuals claimed the wage replacement benefit, approximately 4,000 fewer than in the previous year, representing about 4.9% drop. Likewise, in Brandenburg, 37,000 people cashed in on the parental allowance, 3,000 (7.5%) fewer than the year prior.
This decline is not unique to the states of Berlin and Brandenburg. Across Germany, approximately 1.67 million parents collected parental allowance in 2024, a drop of 95,000 people (5.4%) compared to the previous year, marking the third consecutive year of decrease. Compared to 2021, the value dropped by 10.6%. It's worth noting that during the same period, the total number of births in the country declined by around 15%, according to preliminary figures, with both Berlin and Brandenburg experiencing similar drops in birth rates in 2023.
Alterations to Parental Allowance Payouts from 2025From April 2025, the parental allowance will only be given to single parents and couples with a taxable annual income of up to 175,000 euros, if the child is born on or after April 1, 2025. Previously, this limit was at 300,000 euros. Discussions have been held regarding the possible elimination of the parental allowance altogether.
- Berlin
- Brandenburg
- Single Parents
- Fathers
- Mothers
- Parental Allowance
- Birth Rates
Additional Insights:
- Effect of Reduced Income Limits: The reduction in income limits for parental allowance eligibility has contributed to a decline in the number of families receiving the benefit.
- Declining Birth Rates: The overall decrease in birth rates across Germany has resulted in fewer parents qualifying for parental allowance.
- Shifting Towards Alternative Programs: Some families are choosing to opt for the Elterngeld Plus program due to its longer payout period and lower monthly benefits, which could account for a drop in traditional parental allowance recipients.
- In response to the reduced income limits for parental allowance eligibility, the number of single parents, fathers, and perhaps even mothers in Berlin and Brandenburg receiving parental allowance has decreased.
- The declining birth rates across Germany have led to fewer parents qualifying for parental allowance, with both Berlin and Brandenburg experiencing similar drops in birth rates in 2023.
- As the payout period for the Elterngeld Plus program is longer and the monthly benefits are lower compared to traditional parental allowance, some families in Berlin and Brandenburg may be shifting towards this alternative program, potentially accounting for a drop in traditional parental allowance recipients.
