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POLITICS

Controversial child care cash falters at launch

After over a year of bitter controversy, new childcare rules will come into force on Thursday guaranteeing day care for every child aged one to three - and paying cash to parents who pass up the offer.

Controversial child care cash falters at launch
Photo: DPA

From August 1st parents can choose between taking up a guaranteed nursery place for their child or receiving a payment of €100 a month for each youngster parents do not send to state-run day care. From August 2014, this will go up to €150 a month.

The Betreuungsgeld payment, one of Angela Merkel’s government’s pet projects, will only be for kids born after August 2012 and will be set up for a maximum of 22 months. The money kicks in only after parental benefits (Elterngeld) have finished – when the child reaches the age of 15 months.

To get their cash, parents must apply to regional offices, usually the same ones as give out parental benefit. But, embarrassingly for the government hardly any parents have so far, Der Spiegel reported on Wednesday.

The central German state of Thuringia, for instance, has not yet received one application for the payment, the magazine said, whereas in Mecklenburg-Pommerania there have been just 44 applications.

This has raised concerns in many areas that there will not be enough staff or nurseries to fulfill the government’s promise of a place for every child.

One reason for the slow take-up is that the Social Democrat Party (SPD), which runs the majority of regional governments, have not publicised the scheme – not least because the party bitterly opposed it from the beginning.

So now, just weeks before national elections, the child care fight is getting all the more political in Germany’s regions.

“It’s not our pet project,” a spokesperson from the Thuringia Social Affairs Ministry told Der Spiegel, “but the federal government’s. Why should we advertise a thing we’re skeptical about?”

Meanwhile in Bavaria, where the sister party of Angela Merkel’s Christian Democrats (CDU) the Christian Social Union (CSU) is in power, the social affairs ministry has sent out flyers to 55,000 households advertising the payment.

Of them, 2,755 households identified as being entitled to the payment got almost fully filled-in application forms asking them to just make four or five crosses on a sheet and sign. Still, of these just 500 have so far been returned, the magazine said.

The Local/jlb

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POLITICS

Germany’s Scholz rejects calls for later retirement in Labour Day message

German Chancellor Olaf Scholz (SPD) has rejected calls for later retirement in a video message for Labour Day published on Wednesday.

Germany's Scholz rejects calls for later retirement in Labour Day message

“For me, it is a question of decency not to deny those who have worked for a long time the retirement they deserve,” said Scholz.

Employees in Germany worked more hours in 2023 than ever before: “That’s why it annoys me when some people talk disparagingly about ‘Germany’s theme park’ – or when people call for raising the retirement age,” he said.

Scholz also warned of creating uncertainty due to new debates about the retirement age. “Younger people who are just starting out in their working lives also have the right to know how long they have to work,” he said.

Scholz did not explicitly say who the criticism was targeted at, but at its party conference last weekend, the coalition partner FDP called for the abolition of pensions at 63 for those with long-term insurance, angering its government partners SPD and the Greens.

Scholz saw the introduction of the minimum wage nine years ago – and its increase to twelve euros per hour by his government – as a “great success”. “The proportion of poorly paid jobs in our country has shrunk as a result,” he said.

READ ALSO: EXPLAINED: Is it worthwhile to set up a private pension plan in Germany?

However, he said there were still too many people “who work hard for too little money,” highlighting the additional support available through housing benefit, child allowance and the reduction of social security contributions for low earners.

“Good collective wage agreements also ensure that many employees finally have more money in their pockets again,” he added. 

And he said that the country wouldn’t “run out of work” in the coming years.

“On the contrary! We need more workers,” he said, explaining that that’s why his government is ensuring “that those who fled to us from Russia’s war in Ukraine get work more quickly.”

Work means “more than making money,” said Scholz. “Work also means: belonging, having colleagues, experiencing recognition and appreciation.”

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