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EXPLAINED: How Germany plans to solve its Kita crisis

The German government has approved a new bill designed to tackle the ongoing crisis in nursery schools. Is it likely to make a difference for parents?

Children at a kita in Schlewsig-Holstein
Children at a kita in Kiel, Schleswig-Holstein. Photo: picture alliance/dpa | Axel Heimken

Whether its short-notice closures or endless strikes, sending children to nursery school (Kita) in Germany can be a rollercoaster ride for parents. 

Low resources and chronic understaffing have become a daily reality in the country’s nurseries, and when they are forced to close due to staff shortages the burden falls on families to find alternatives. 

To try and tackle these issues, the German government is set to funnel €4 billion into daycare centres over the next two years. 

This was set out in a new amendment to Kita Quality Act, which was passed in the cabinet on Tuesday and will head to the Bundestag in September. 

Celebrating the move, Family Minister Lisa Paus of the Green Party said that, despite budget restrictions, the government was sending a “strong signal that we want to improve the quality of Kitas in Germany”.

READ ALSO: What is Germany’s digital pact for schools and how does it affect pupils?

Nevertheless, critics say it doesn’t go far enough to address the scale of the problem. 

What’s changing under the new law?

Not much right away. In fact, much of the bill simply shores up federal funding for nurseries in the states, which will receive €2 billion from the central government each year. 

However, the rules around how this money can be spent are getting stricter.

The focus will now be on retaining and recruiting childcare staff, ensuring kids get enough physical activity, and providing healthy, sustainable meals.

In a significant change, states will no longer be allowed to use this money to reduce childcare fees. Instead, they’ll need to funnel it into extra staffing and improving the quality of care.

Does that mean higher costs for parents?

The Family Ministry doesn’t think so. 

Currently, only six states use federal funds to offer lower Kita fees for parents: Mecklenburg Western-Pomerania, Saxony-Anhalt, Bavaria, Thuringia, Saarland und North Rhine-Westphalia.

Other states like Berlin that offer free or low-cost childcare use money from their own state coffers instead. 

According to ministry, currently states are allowed to spend 49 percent of federal funds on fee reductions, but most have only needed around 15 percent. This money could be replaced from state budgets, they argue.

READ ALSO: Could parents in Germany pay higher Kita fees to combat staff shortages?

Why is staffing such an issue? 

In Germany’s ongoing skills gap, workers in education and childcare have been among the most highly sought. 

Experts say that a maintaining a good teacher-student ratio is essential to offering quality childcare, while low staff numbers can overburden teachers and be harmful to children’s wellbeing.

kita in Dortmund

Children at a Kita in Dortmund help with planting in February. Photo: picture alliance/dpa | Bernd Thissen

According to a recent report by the Paritätischer Gesamtverband, Germany has 125,000 fewer workers in its daycares than it currently needs.

Other estimates from the Family Ministry suggest that Germany will be missing around 90,000 Kita staff by 2030. 

That said, the bill stops short of laying out concrete measures for attracting and retaining staff. Instead, the ministry is hoping that offering better working conditions will encourage workers to stay in the job for longer. 

What do people think of the new law?

The Education and Science Workers’ Union (GEW) supports the shift away from fee reduction, emphasising the importance of improving the quality of childcare instead. 

However, they stress that families should still have financial relief to support them with childcare costs. 

The GEW has also called for minimum quality standards nationwide – something the new law doesn’t establish, despite being mentioned in the government’s coalition agreement.

Tobias Ernst, chair of the Child Research Foundation, echoed this sentiment, telling FAZ: “The fact that there are to be no nationwide standards is a missed opportunity.”

READ ALSO: How expensive is childcare across Germany?

Meanwhile, the left-wing Linke party slammed the the government for not setting out more concrete measures for increasing staff numbers in Kitas.

“The ministry should finally say openly what it would take to really change the shortage of skilled labour,” said Linke chairwoman Heidi Reichinnek. “You need money to enable a better worker-child ratio.”

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RENTING

Germany’s housing benefit to increase at the start of 2025

Low-income workers and families in Germany can receive welfare payments known as Wohngeld to offset high rental costs. This benefit is set to increase in the new year.

Germany's housing benefit to increase at the start of 2025

On January 1st, Germany’s housing benefit payment (Wohngeld) will increase by 15 percent to offset rising rents and cost of living.

This equates to an average of €30 more per month for housing benefit recipients.

The rent subsidy is reserved for tenants with low incomes such as pensioners with low pensions or low-income families, for example.

According to the Ministry of Construction, roughly 1.9 million households will be entitled to the subsidy next year, following changes to the eligibility criteria in 2023.

According to reporting by Focus, the average housing benefit pay in Germany is currently around 370 per month. From 2025, it will be 400.

READ ALSO: What you need to know about the German rent brake 

The raise is brought by a new ordinance which has been adopted by the Federal Cabinet, the Ministry of Construction in Berlin announced. It still requires the approval of the Bundesrat.

“It’s a done deal. From 2025, the Wohngeld will be increased to take into account general price and rent developments,” said Federal Building Minister Klara Geywitz (SPD), annoucing the increase on X.

Why increase the housing subsidy?

“People today spend significantly more money on rent, energy and everyday goods,” Geywitz told DPA.

The amount of Wohngeld available to qualified citizens is reviewed every two years based on basic price and rent developments. The ministry had announced that it expected to increase the subsidy in July.

The last reform occurred in 2023. At that time the benefit was also extended to a broader circle of recipients. 

The housing benefit is intended to prevent low-income workers and pensioners from needing to apply for citizen’s allowance (Bürgergeld) or basic security to pay rent.

Do I qualify for housing allowance?

Virtually any renter in Germany can apply for Wohngeld, but it is only granted to those whose housing costs are both reasonable and shown to be higher than their income level.

The Ministry of Construction suggests that the following groups of people in particular may qualify for the housing benefit:

  • Pensioners with a low pension
  • Working families with low incomes.
  • Low-wage workers.
  • Students who are not eligible for BAföG.
  • Nursing home residents.

READ ALSO: Wohngeld – How people in Germany can get help with rising living costs

Principally, a few factors determine your eligibility for housing allowance: the rent price, the size and location of the property, your income, and the number of people living in the rented household.

There is also an income cap for the benefit, which depends on where you live.

To get an idea of whether or not you might qualify for Wohngeld, you can use this calculator provided by Germany’s Ministry of Housing, Urban Development and Building (BMWSB).

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