Today, parents in Germany must apply to the Familienkasse for child benefit, gather documents and wait. From 2027 that is meant to fade away: on 25 September the Bundesrat gave its final approval to a law introducing Kindergeld without an application. A separate tax-reform draft would also lift the monthly amount from €259 to €267.
The Bundestag passed the law on 9 July with votes from the CDU/CSU, SPD and Greens. Finance Minister Lars Klingbeil (SPD) said it would let parents “be fully there for their baby after the birth” (“Dann können Eltern nach der Geburt voll und ganz für ihr Baby da sein”). The principle is “once-only”: authorities swap data among themselves, and citizens supply it just once.
How will automatic payment work?
The Federal Central Tax Office assigns every newborn a tax ID, the registry office reports the birth, and the data flows to the Familienkasse. If everything is clear-cut, payment starts without a claim. The law is due to take effect in early January 2027, but it will be rolled out in two stages.
Stage one, in spring 2027, covers families already receiving Kindergeld for an older child, whose data the Familienkasse already holds; the Finance Ministry earlier named March 2027 for the first payments. Stage two, at the end of 2027 (November has been mentioned), covers firstborn children, but only if at least one parent lives with the child in Germany, the Familienkasse has an IBAN, and at least one parent works in Germany. Where data is missing, today’s practice stays: the Familienkasse checks, and parents complete pre-filled forms. Changes such as moving house or a child finishing education must still be reported without delay.
What about the amount?
This law does not change the rate. That is the job of a second draft: in early September the cabinet adopted the Income Tax Reform Act 2027, under which Kindergeld rises from €259 to €267 in 2027 and €272 in 2028 – €96 and €156 more per child a year. The child allowance would go from €9,756 to €10,056 and then €10,236. For a couple with two children and €2,800 gross each, the Finance Ministry calculates about €632 of annual relief in 2028, stressing the figure is provisional. The Bundestag and Bundesrat still have to approve the package.
The financing is contested: higher top tax rates, a higher flat tax on mini-jobs, less support for craftsmen’s services. Several states warn of lost revenue, and Economy Minister Katherina Reiche’s (CDU) ministry thinks the relief is too small. The figures could still change.
For Ukrainian families nothing changes yet: those with a residence permit under Section 24 who live in Germany with their child still claim from their local Familienkasse (form KG1 plus the child annex). Since June 2022 the Federal Employment Agency no longer requires a job. Our assessment: the work condition for automatic payment for firstborns could trip up recently arrived parents, who would then have to claim themselves. That is a forecast, not an assurance from the authorities. Until the law applies, do not delay claiming after a birth.
Sources: Federal Government, Federal Employment Agency, Berliner Zeitung, PwC Germany
