In many daycare (Kita) centres around Germany, the situation is precarious: skeletal staffing has led to burnout and overwhelm among workers. Also short-notice closures, sometimes for related staff strikes, often leave parents scrambling to find alternative childcare.

As services union Verdi wages a battle for better working conditions in Kitas, the Ministry of Family affairs is drafting new plans to tackle these desperate staff shortages.

According to a draft of the Childcare Quality Act obtained by DPA, state governments could face restrictions in future in the way they spend federal funds.

From 2025, the €2 billion provided by the Family Ministry to state governments should be used primarily for hiring and training new staff, rather than offering reduced Kita fees for families.

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Currently, up to 49 percent of this federal funding can be used by states to reduce daycare fees or abolish them entirely. 

The new law, which is due to be discussed in cabinet in the coming weeks, would remove this possibility. 

Will parents pay more in future?

Though the plans raise the spectre of higher Kita fees for parents, Family Minister Lisa Paus (Greens) believes that hikes are unlikely.

According to the ministry, only six of Germany’s 16 states currently use federal funds for offering reduced childcare costs.

In Berlin, for example, where families pay no more than a small administrative fee for their child’s Kita place, money from the state coffers is used to finance the reduction.

If the draft law comes into force on January 1st, 2025, a six-month transition be will in place to allow states to consider other options.

During this time, regional family ministers can continue financing reduced Kita fees using federal funds.

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After that, the ministry believes that states that want to offer cheaper Kita spots can use state tax revenues to do so, while using federal money solely for recruiting qualified staff.

However, it’s unclear if states currently have the available funds to do this.

Another question that remains is whether the measure will be enough to provide the number of new staff needed over the coming years.

According to Paus, there is likely to be a shortage of 50,000 to 90,000 skilled workers in Germany’s daycare centres by 2030 – but an alternative estimate by the Paritätische Wohlfahrtsverband suggests this number could be as high as 125,000.