Gutachten zum Reformvorschlag „Kindergrundsicherung“

This report examines a reform proposal by the Bündnis 90/Die Grünen to introduce a reformed basic child benefit (Kindergrundsicherung). The aim of the reform proposal is to improve the material situation of families and to simplify the eligibility for benefits. Core elements of the reform proposal include a consolidation of currently various transfers for families into the reformed basic child benefit. To achieve this, the reform proposal disentangles child-related benefits from unemployment benefit II. Furthermore, the concept includes a general increase in the level of benefits in the low and middle income brackets. The reform proposal offers significant improvements in terms of disposable income, especially for families with children in the lower income deciles. This also significantly reduces the risk of poverty. Negative labor supply effects contribute to the high fiscal costs of the reform proposal. When designing the reform proposal, there is room for balancing in the level of a cutoff threshold and a transfer withdrawal rate. The negative work incentives are relatively weaker with a lower transfer withdrawal rate and a higher cutoff.