Cross-border Assessment 2023

Dossier 3: Kinderzuschlag and Kindgebonden budget: The border worker between two stools?

Dossier summary

The summary of this dossier can be viewed in the overall summary of the ITEM Cross-Border Impact Assessment 2023.

Entire dossier

The entire dossier is available in English and Dutch.

Dossier explanation

Kinderzuschlag is a supplement to child allowance in Germany. This is intended for low-income families. Since last year, however, the applicant must reside in Germany to receive the allowance. In the Netherlands, the income-related supplement is called the kindgebonden budget. The eligibility of such supplement is linked to the right for the child benefit (kinderbijslag). For example, in a situation of a (single) parent residing in the Netherlands and working in Germany, they may not be eligible for either of the allowances. Especially for those with lower incomes, this has major consequences. Is this situation in compliance with European law, and do the two respective countries correctly interpret the regulations in cross-border situations? Why is the kinderzuschlag no longer exportable like it was prior to 2022? One may also question the justification for the restriction of kindgebonden budget to the right to Dutch child benefit under EU law.