German govt agrees new 2.4b euro basic child allowance

BERLIN, Aug 28 (Reuters): Germany's governing coalition has agreed on a new basic child benefit allowance at an initial cost of around 2.4 billion euros ($2.6 billion) from 2025.
Chancellor Olaf Scholz of the centre-left SPD, family minister Lisa Paus of the Greens and Finance Minister Christian Lindner of the liberal FDP reached an agreement after a meeting late on Sunday, ending a dispute that has blocked other government initiatives.
The allowance will bundle together different benefits that already exist, while improving access to the payments through digitalisation and automation, Paus and Lindner said at a press conference in Berlin on Monday.
Child payments are currently fixed at 250 euros per month per child regardless of parental income with additional benefits for lower-income families. The government said it could not yet say how much payments would amount to in 2025.