Child poverty: causes, effects, ways out - Analysis and Consulting
Child poverty is an important socio-political issue in Germany, as one in five children is at risk of poverty. That is 2.9 million children and young people under the age of 18. The Federal Minister for Family Affairs, Lisa Paus, sees the planned basic child protection scheme (“Kindergrundsicherung”) as a measure to lift low-income families out of poverty by reforming social transfers. The fundamental question of the extent to which monetary transfers for low-income families could eliminate child poverty is controversial within the coalition. Federal Finance Minister Christian Lindner (FDP) is in favour of long-term child poverty solutions and considers the integration of young parents into gainful employment to be the most important basis for this. The draft law on basic child support (“Kindergrundsicherung”) adopted by the federal government in September 2023 does not contain any statements on measures that help to encourage young parents who are able to work to participate in catch-up education and gainful employment.
Three factors are of central importance for the lasting elimination of child poverty:
• firstly, sustainable solutions must encourage all young parents who are capable of working to participate in gainful employment. Young parents represent a new and important target group for German youth employment agencies (“Jugendberufsagenturen”).
• However, the integration of young parents into the labour market can only succeed if a concerted effort is made at all levels of government to make overdue investments in the qualitative and quantitative expansion of childcare and education institutions. This is also the conclusion of the CDU/CSU parliamentary group's Children's Future Program (“Kinderzukunftsprogramm”).
• Thirdly, preventative measures must strengthen young parents in their parenting and relationship skills as well as in their mental and physical health. Those parents who might not have a sufficient command of the German language face the complex task of improving their language skills while at the same time looking after their children and household. They are fundamentally dependent on good childcare and educational institutions.
The qualification of young parents to participate in gainful employment is so important because child poverty primarily arises when mothers and fathers do not participate in gainful employment or do not participate sufficiently. In 2022, half of financially dependent children, adolescents and young adults under the age of 25 in a family household were at risk of poverty if neither parent was in gainful employment. If at least one parent is in full-time employment, this only applies to 8.5 per cent of financially dependent young people in the parental household. With two parents in full-time employment, the proportion of children and young people at risk of poverty falls to 6.2 per cent. Further poverty risks exist if parents or children are affected by chronic illness. Single parents, families with three or more children and families with a migration background are also at above-average risk of poverty. However, a low household income does not automatically mean living in poverty, but increases the risk of poverty. Parents' coping skills can protect children from poverty. These include the ability to make the best use of a tight budget for the child's well-being, maintaining positive personal relationships, empathy for the child and openness towards educational and counselling services.
