Germany Cuts Child Support Advance to Age 15, Saving €1.2B Annually

Germany’s Federal Family Minister Karin Prien announced plans on July 12 to slash the Unterhaltsvorschuss, the state advance payment for children when non-paying parents fail to provide support. The eligibility age will drop from 18 to 15 years old. Costs have quadrupled since the 2017 expansion, reaching 3.2 billion euros in 2024, with municipalities absorbing most losses as the state recovers less than 600 million euros from delinquent payers annually.

Why costs exploded after 2017

Before 2017, the Unterhaltsvorschuss was paid only until age 12 and for a maximum of 72 months. The 2017 reform removed the age cap, allowing payments until age 18 without time limits. State spending jumped from under 1 billion euros in 2016 to 3.2 billion euros in 2024. Recovery from non-paying parents fell far short: only 600 million euros of 3.2 billion were reclaimed in 2024, versus 200 million of under 1 billion in 2016.

Prien’s plan to cut the budget

Prien wants to limit payments to age 15, cutting roughly 1.2 billion euros annually. She plans to submit a draft law soon. The measure targets what she calls “one of the largest cost factors for municipalities.” The federal government pays 40 percent of costs; states and municipalities cover the rest and often shift expenses to local budgets.

Tougher enforcement on delinquent parents

Prien announced that states and municipalities will pursue harder collection from non-paying parents. New penalties include revoking driving licenses for false statements or refusal to provide income information. Prien called this “a question of justice” and urged coordinated enforcement across regions.

Kindergeld change shelved for now

Single parents had requested that child allowance (Kindergeld) be only partially counted against support advances, not fully deducted. Prien said this change is “simply not financially feasible” and will not happen for now, despite CDU/CSU and SPD pledging it in their coalition agreement.

Final Thoughts

The cut to age 15 will save municipalities roughly 1.2 billion euros yearly but leaves 2.1 million single-parent households with less support for teenagers. Enforcement improvements may recover more from delinquent payers, but the core issue remains: state spending on child support advances has become unsustainable.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.