Bavaria scraps €3,000 child grant to save struggling daycare centers

Parents lose €6,000 in subsidies—but Bavaria bets on saving daycare spots. Will this trade-off secure better childcare for families?

, and Administrator

2025 November 11 . 11:01 AM

1 min read

In this black and white picture there are children standing on the steps. They are holding musical... — In this black and white picture there are children standing on the steps. They are holding musical instruments. The children in the front line are holding cells. There are children holding violins and trumpets. Behind them there are pillars. In the background there is a wall. There are doors to the wall.

Bavarian Cabinet Scraps New 'Children's Start Money' - Bavaria scraps €3,000 child grant to save struggling daycare centers

Bavaria's Minister President, Dr. Markus Söder, has announced a significant shift in the state's childcare policy. The planned child starting grant of €3,000 per child has been abolished, and funds will now be redirected to daycare centers to prevent closures due to rising costs.

Last year, the state government had resolved to halve direct family payments and phase out nursery subsidies. Now, the government has decided to prioritize daycare spots over direct payments to parents. Dr. Markus Söder, the Minister President of Bavaria, made this decision following the cabinet's budget retreat.

Söder stated, 'What good is direct financial support to parents if there are no daycare spots available?' The funds previously earmarked for the child starting grant will now be fully redirected to daycare centers to ensure their sustainability. Previously, parents of young children in Bavaria received at least €6,000 in total from the state, including family and nursery subsidies. However, with the new policy, these subsidies will no longer be provided.

The planned child starting grant for children born on or after January 1, 2025, has been scrapped. The Bavarian government aims to use the redirected funds to maintain and improve daycare facilities, preventing closures due to soaring operating costs. This change in policy reflects the government's commitment to ensuring the availability and quality of daycare services for Bavarian families.