Definition and Introduction to Parental Allowance for Home Care
Das Parental allowance for home care was a financial benefit provided by the German state, paid to parents who did not use a publicly funded childcare place (e.g., daycare center, childminder) for their child between the ages of 15 and 36 months. The introduction, legal framework, chronological development, and final legal review of the parental allowance for home care have been and continue to be the subject of extensive legal and societal debate. The following article discusses the legal foundations, development, scope of application, constitutional review, as well as the financial and social law implications of the parental allowance for home care in Germany.
Legal basis and statutory regulation of the parental allowance for home care
Statutory incorporation
The parental allowance for home care was introduced by the Law to Establish a Parental Allowance for Home Care of 15 February 2013 and integrated into the Federal Parental Allowance and Parental Leave Act (BEEG). Its legal basis was § 4a BEEG, regulating the eligibility requirements, scope of benefit, and the application process.
Eligibility requirements
Parents were entitled to parental allowance for home care if they
- Lived with their children aged 15 to 36 months inclusive in the same household,
- Were no longer receiving parental allowance,
- Did not use a publicly funded childcare place for the child,
- And had their residence or habitual abode in Germany.
For children born on or after August 1, 2012, parental allowance for home care could be applied for retroactively.
Amount and duration of the benefit
The benefit was initially paid at a rate of 100 euros per month per child, rising to 150 euros per month from August 2014. The duration of entitlement was generally limited to a maximum of 22 months (from the child’s 15th to 36th month of life), with eligibility depending on the actual non-use of institutional childcare.
Legal development of the parental allowance for home care
Political and sociological classification
From the outset, the parental allowance for home care was politically and societally controversial. Supporters regarded the benefit as recognition of parental care and as promoting freedom of choice in childcare, while critics warned of its counterproductive impact on the goal of reconciling family and work and of the risk of disadvantaging socially disadvantaged families.
Legislative history
The parental allowance for home care was introduced as a compromise within the then governing coalition during the legislative process, and passed after controversial debates. It officially came into force on August 1, 2013.
Constitutional review and abolition
Decision of the Federal Constitutional Court
Following numerous constitutional concerns regarding the federal government’s competence to introduce a parental allowance for home care, the law became the subject of a judicial review. On July 21, 2015, the Federal Constitutional Court (Case No. 1 BvF 2/13) ruled that the federal introduction of parental allowance for home care was unconstitutional. The judges explained that, pursuant to Article 72(1) in conjunction with Article 74(1) no. 7 of the Basic Law (GG), legislative competence for parental allowance for home care lay with the federal states, not the federal government.
Practical consequences of the decision
As a result of the decision, parental allowance for home care could no longer be paid for new cases. Benefits already being paid continued to be granted for the guaranteed period, and later applications were rejected. The legal principles regarding the so-called suspension of application and the protection of legitimate expectations for ongoing claims were set out in administrative instructions and circulars from the paying agencies.
Alternative state regulations
Following the decision of the Federal Constitutional Court, several federal states examined or established their own parental allowance for home care schemes (e.g., Bavarian state parental allowance for home care), each of which is subject to state regulations and budgetary considerations.
Parental allowance for home care in relation to other social benefits
Relationship to parental allowance
Parental allowance for home care was regulated as subsidiary to parental allowance, meaning that simultaneous receipt of both benefits was generally excluded. If parents made use of state-supported childcare, entitlement to the parental allowance for home care ceased.
Offsetting against other benefits
Parental allowance for home care was generally offset against benefits under the Second Book of the Social Code (SGB II, so-called unemployment benefit II) and social assistance under SGB XII. As a result, in relevant cases it reduced payments under SGB II and SGB XII in full.
Review and legal evaluation after abolition
Evaluation and aftermath
In retrospect, the parental allowance for home care was evaluated by various panels and academic institutions. Legally, it is clear that the federal government had exceeded its legislative competence for this benefit. The discussion about child- and family-related transfer benefits at the state or federal level remains a significant social and constitutional issue. Since the discontinuation of payments, there are no longer any federal legal grounds for parental allowance for home care.
Comparable benefits at state level
With the abolition of parental allowance for home care at the federal level, several states developed region-specific alternatives (including Bavaria). These state parental allowances for home care differ with regard to eligibility requirements, benefit amount, and duration, and are subject to state-level regulatory options.
Literature and further information
- Federal Parental Allowance and Parental Leave Act (BEEG)
- Decision of the Federal Constitutional Court dated July 21, 2015, Case No. 1 BvF 2/13
- Law to Establish a Parental Allowance for Home Care dated February 15, 2013
Summary
Parental allowance for home care was a federally regulated, now discontinued social benefit that financially compensated parents for caring for their children themselves instead of using institutional childcare. After constitutional review, the measure was abolished due to lack of federal legislative competence. The topic of the parental allowance for home care raises fundamental social, family, and constitutional law questions and remains relevant, especially with regard to regulatory scope at the state level.
Frequently Asked Questions
What legal requirements had to be met to receive parental allowance for home care?
Eligibility for parental allowance for home care depended on certain legal requirements. Generally, parents were entitled if, for their child in the second or third year of life, they did not make use of any publicly funded child day care options, such as a daycare center or day care. Another eligibility requirement was that the child was entitled to parental allowance under §§ 1 to 5 of the Federal Parental Allowance and Parental Leave Act (BEEG), and the applicant and child resided or habitually stayed in Germany. Furthermore, the child had to be born after July 31, 2012, and no comparable state-level parental allowance for home care could have been claimed, in order to avoid double benefits. It should also be noted that payment of the parental allowance for home care was only possible upon application, and proof of refraining from publicly funded child day care had to be provided. The legal basis was § 4a BEEG (old version).
What was the effect of the Federal Constitutional Court’s judgment on the parental allowance for home care?
By judgment dated July 21, 2015 (Case No. 1 BvF 2/13), the Federal Constitutional Court declared the legal provision underpinning the parental allowance for home care at the federal level null and void. According to the Court, the main reason was the lack of legislative competence on the part of the federal government to regulate financial benefits intended to create incentives for not using early childhood education. The competence for promoting children in daycare centers lies mainly with the states. Following the announcement of the decision, payments at the federal level were discontinued; however, parental allowance for home care already received by beneficiaries remained legally unaffected and did not have to be repaid. The constitutionally relevant components of the decision especially referred to the Basic Law, notably Art. 72 para. 2 GG (competing legislation).
Does German law still provide for entitlement to parental allowance for home care?
Following the decision of the Federal Constitutional Court and the resulting deletion of the relevant federal regulations from August 2015, there is no longer a nationwide statutory right to parental allowance for home care. However, some individual federal states, such as Bavaria, have introduced comparable benefits at the state level (e.g., the Bavarian parental allowance for home care under the Bavarian Parental Benefits Act). These state regulations differ significantly from the former federal benefit with regard to eligibility requirements, amount, and duration. Nevertheless, there is no longer a uniform nationwide entitlement, so the legal situation is largely determined by the respective state law.
How were parental allowance for home care and parental allowance related from a legal perspective?
Parental allowance for home care was legally designed as a supplementary benefit to parental allowance, but could not be received simultaneously in the same period. Receipt of parental allowance and parental allowance for home care was therefore mutually exclusive, as entitlement to the parental allowance for home care only arose after the parental allowance period expired. The legal precedence of parental allowance was explicitly stipulated by law. Other public youth welfare benefits under SGB VIII that served the same purpose were also taken into account to prevent overlapping benefits. Thus, strict checks were conducted for any potential claims overlapping with parental allowance for home care.
Could parental allowance for home care be offset against or seized in relation to other social benefits?
Parental allowance for home care was designed in law as a purpose-specific family benefit. According to statutory provisions, parental allowance for home care was to be offset against social benefits under SGB II (unemployment benefit II, social allowance), SGB XII (social assistance), the Asylum Seekers Benefits Act, as well as parental allowance. Moreover, parental allowance for home care was fundamentally not subject to seizure (§ 54 SGB I), as it was a purpose-specific social benefit. This was particularly relevant in relation to transfer payments and insolvency proceedings.
What legal aspects had to be considered when applying for parental allowance for home care?
The application for parental allowance for home care had to be submitted in writing, using the nationally standardized forms, to the respective responsible parental allowance office. Essential documents included the child’s birth certificate, proof of residence, proof of waiver of publicly funded child care, and—if applicable—proof of a valid residence permit. The application procedure was also subject to deadlines: Parental allowance for home care could generally be claimed retroactively for up to three months before submission of the application; a retroactive benefit beyond this period was legally excluded.
What happened to ongoing entitlements after the constitutional court decision?
Existing or already approved or ongoing entitlements to parental allowance for home care were generally protected by the Federal Constitutional Court’s decision. Parental allowance for home care could continue to be paid for approved periods, provided that approval and a fixed benefit period were in place before the judgment. However, new applications could no longer be approved. Benefits already paid were not reclaimed, even though the legal basis was retrospectively declared unconstitutional. In this respect, recipients had legal certainty over benefits already received.
