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Germany Introduces Payment for Parents to Have a Financial Choice Not to Be in Paid Employment and Use Childcare/ECE

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In November 2012 German politicians voted in a new childcare/ECE benefit programme that will financially help parents who stay at home to be their child's carer/educator instead of using government subsidised childcare.

This has happened at a time when the German Chancellor Angela Merkel's government has been urging other European nations to rein in spending and cut back public debt. It demonstrates support for parents to have a real financial choice as to whether to have a paid job and put their child into childcare/ECE or be their child's full-time carer and educator. 

Families where one parent stays at home will receive €100 a month under the programme, increasing to €150 a month from 2014 onward.

The proposal was met with harsh criticism by the opposition and business leaders but the law passed with a vote of 310 to 282, with two abstentions.

It has been reported in the media that the centre-left opposition is critical because they say the money should be used to create more early childhood centres and increase children's participation in early childhood education. German business leaders argue it will pull parents from their jobs and deprive the German economy of valuable workforce.

 

Read more

German research study on the impact of giving parents a choice not to use publicly subsidised ECE


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