Parental allowance 2026:
Cuts, uncertainty – and what this means for your family budget

The current discussion surrounding parental allowance is causing uncertainty for many expectant parents. New income thresholds, political savings plans and debates about further cuts are raising questions:

  • Will we still receive parental allowance at all?
  • How much will actually be left in the end?
  • How can you plan a baby budget sensibly?
  • What should you look out for when buying a pram and initial baby equipment?



Especially at a time of rising living costs, family planning is becoming a financial challenge for many couples.
In this guide, we explain clearly:

  • which changes to parental allowance apply in 2026
  • what the political debate means in concrete terms
  • how to plan your family budget realistically
  • what really matters when making important purchases


Last updated: May 2026  

What has changed with parental allowance in 2026

Parental allowance remains one of the most important family policy benefits in Germany. At the same time, it is increasingly becoming the focus of political cost-cutting measures.

The biggest change concerns the income threshold.

New income threshold of €175,000 for parental allowance:

As of April 2025:

  • Couples with a taxable annual income of over €175,000 are no longer eligible for parental allowance
  • The threshold applies jointly to both parents
  • The taxable income from the previous year is decisive

For many families, this means that even with a good income, important financial support suddenly disappears.

Parental Allowance: Restrictions on Concurrent Receipt

Regulations have also been tightened for parents claiming parental allowance together. Both parents are now only able to claim basic parental allowance simultaneously to a limited extent. According to the German Federal Government, the aim of the reform was to reduce public spending.

For families, however, this often means:

  • less flexibility
  • more complex planning
  • a greater organisational burden

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Entitlement to parental allowance: Why are further cuts being discussed?

Parental allowance costs the state several billion euros every year.
As part of budget debates and austerity packages, further adjustments are therefore regularly discussed.

Among other things, political discussions are focusing on:

  • further income thresholds
  • stricter restrictions on Parental Allowance Plus
  • amended payment models
  • cuts to the family budget


Important: Not every political discussion automatically leads to a change in the law.

Nevertheless, many reports are currently causing uncertainty among expectant parents.

What will change with parental allowance in 2026 – at a glance Current regulations summarised

  • Income limit: €175,000 taxable annual income
  • Parental allowance remains capped at €1,800 per month
  • Minimum amount remains €300
  • Restrictions on concurrent receipt
  • ElterngeldPlus remains in place in principle
  • Combination of different models remains possible


As of May 2026, further changes may be discussed politically, but have not yet been finally approved.

What do the changes to parental allowance mean for you specifically?

The impact depends heavily on your personal circumstances.


Scenario 1: Both parents in employment, middle income

Example:

  • combined income: €85,000
  • both are employed
  • one parent takes 12 months of parental leave


In many cases, eligibility for parental allowance remains fully intact. Nevertheless, a noticeable financial gap often arises:

  • lower net income
  • rising everyday costs
  • higher expenses for essential baby equipment


That is why realistic budget planning is becoming increasingly important.



Scenario 2: Single parent

Single parents continue to benefit from special provisions relating to parental allowance.

They can often:

  • make use of additional months of entitlement
  • use ElterngeldPlus more flexibly
  • combine part-time working arrangements

Early planning is particularly important here, as disposable income is usually placed under significantly greater pressure.



Scenario 3: Self-employed or freelancer

For self-employed people, parental allowance is often more complicated.

Relevant factors include:

  • calculation of profits
  • entitlement periods
  • ongoing income during parental leave
  • flexible working arrangements


Many self-employed people underestimate how significantly individual months in which invoices are issued can affect parental allowance. Seeking advice at an early stage is therefore advisable.

Calculate parental allowance: Which tools are really helpful?

If you would like to calculate your entitlement more precisely, official calculators and advice centres can help.

Particularly helpful are:

  • the federal government's official parental allowance calculator
  • family advice centres
  • tax advisers if you are self-employed
  • parental allowance advice services provided by the federal states

Important: Online calculators usually provide estimates only and are no substitute for individual advice.

Family Budget & Parental Allowance 2026: What Parents Need to Pay Particular Attention to Now

When parental allowance decreases or becomes less certain, many parents automatically reassess their spending. That makes sense. But not every cost-cutting measure really saves money in the long term. Especially with products that are used every day, quality can ultimately be cheaper than buying replacements several times over.

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- Your my junior guide.

Experts and parents share their knowledge about pregnancy, birth, pushchairs and more.
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What do you really need from the first day after giving birth?

Many parents buy significantly more than they actually need later on.

The most important areas:

By contrast, many gadgets are only used for a few months or hardly at all.



Buy once instead of replacing several times

Taking a long-term view often pays off, especially when buying a pram.

Important questions:

  • does the product grow with your child?
  • how long can it be used?
  • how practical is it really for everyday use?
  • how compact is it?
  • what is its resale value?

A high-quality pram can be used for several years or later resold at a good price. In the long term, this reduces the actual overall costs.



What you should really look for in prams and buggies

Price is not the only deciding factor.

Often, the following are more important:

  • practicality for everyday use
  • weight
  • folded dimensions
  • ergonomics
  • quality of the materials
  • warranty services
  • resale value

Compact systems that combine travel and everyday use often save money and space in the long term.



Why many families are choosing flexible systems

Many parents no longer want to buy several individual products.

That is why modular systems are becoming increasingly popular:

  • usable from birth
  • can later be used as a buggy
  • folds compactly
  • practical for everyday use in the car and when travelling

This is particularly important in cities or in smaller homes.

Conclusion on parental allowance: Family planning requires more clarity than ever today

The debate surrounding parental allowance in 2026 shows one thing above all: many families want certainty when it comes to planning.

Even when political decisions create uncertainty, good information and well-considered decisions can help make everyday family life more relaxed in the long term.

What matters is not saving as much as possible everywhere.
What matters is making conscious decisions about what truly makes everyday life easier for you.

Frequently Asked Questions about Parental Allowance 2026

Will I still receive parental allowance if we earn €180,000?

If your joint taxable income is over €175,000, you are currently no longer entitled to parental allowance.


Can I combine ElterngeldPlus and basic parental allowance?

Yes. Both models can still be combined. Which option makes sense depends on your individual situation.


What happens if I work during parental leave?

Working part-time while receiving parental allowance is generally possible. However, your income will be taken into account when calculating the parental allowance.


How do I plan my family budget realistically?

For realistic planning of your family budget, it helps to first compare all fixed costs and one-off purchases. Also take into account the ongoing costs for your baby as well as any potentially reduced income during parental leave. It is also sensible to plan a financial buffer for unexpected expenses.


Which purchases are genuinely worthwhile after the birth, from day one?

Products with a long useful life, high quality and good resale value are often more economical than very cheap short-term solutions.


Our tip: What really lasts

Political debates are constantly changing. Family life remains.

Many parents only realise later how important good decisions about everyday products are.


Things that are used every day in particular should:

  • work reliably
  • be usable for a long time
  • be flexible in everyday life
  • be made to a high standard

At my junior®, we develop products specifically for this everyday life:

  • compact for small spaces and travelling
  • durable for several years of use
  • ergonomic for parents and child
  • focused on quality rather than short-term trends
  • Because a well-designed product is often more cost-effective in the long term than several compromises.

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