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Germany to Make Child Benefit Automatic From January 2027

The reform speeds payments by requiring a newborn's tax identification number and the Familienkasse holding the family's bank details to trigger payouts.

Overview

  • The Bundesrat gave final approval on Friday and the law is set to enter into force on 1 January 2027, after the Bundestag passed the bill in July.
  • Payments will be made without a parental application once a child has a tax identification number and the Familienkasse has the family's bank account details.
  • Rollout will happen in two stages next year: first for newborns of families who already receive Kindergeld and later extended to firstborns, with reports saying the firstborn phase begins in November.
  • Automatic payments for a first child require at least one parent to live with the child in Germany and at least one parent to work in Germany to avoid paying when another EU state is responsible.
  • If needed information is missing or entitlement is unclear the Familienkasse will revert to the existing application process and send a welcome letter; the benefit is also reported to rise from €259 to €272 in 2028.