Lisa Paus Defends Parental Allowance Amid Criticism

Berlin - The Federal Minister for Family Affairs, Lisa Paus, has publicly defended the parental allowance program in response to recent calls for its abolition. The criticism, primarily articulated by Clemens Fuest, president of the Ifo Institute in Munich, argues that the allowance is not effectively targeted and mainly benefits those who are already financially secure.

Paus, a member of the Green Party, asserted that the parental allowance plays a crucial role in supporting the balance between work and family life. She emphasized that it allows parents to care for their children without facing significant financial hardships. Furthermore, the minister highlighted that the allowance promotes equality among parents, enabling both mothers and fathers to participate actively in childcare and upbringing.

According to the family ministry, the parental allowance is a key instrument in modern family policy, contributing to the economic independence of parents following the birth of their children. Statistics reveal that since the restructuring of family policy in 2007, the employment rate of mothers with minor children has increased from 63% in 2008 to 69% in 2022. Additionally, the proportion of mothers engaged in full-time equivalent part-time work has risen from 10% to 18% during this period.

Paus also pointed out a significant shift in paternal involvement, noting that only 3% of fathers accessed benefits under the previous childcare allowance system. In contrast, following the introduction of the parental allowance, around 21% of eligible fathers participated within a year, a figure that rose to over 40% by 2020. This indicates a growing trend of shared parenting responsibilities, which the minister attributes to the availability of the parental allowance and enhanced childcare options.

In light of the ongoing debate, Paus reaffirmed her commitment to the program, stating that it plays a vital role in combating the shortage of skilled labor by encouraging greater workforce participation among mothers. The minister recently lowered the income threshold for eligibility, meaning that as of April 2024, parents with a taxable income exceeding EUR200,000 will no longer receive benefits, with the threshold further reduced to EUR175,000 in April 2025. This move aims to ensure that the allowance is directed towards those who need it most, thereby enhancing its effectiveness.

As discussions about the future of the parental allowance continue, Paus remains a staunch advocate for its benefits, which she believes are essential for fostering a more inclusive and supportive environment for families.