In Berlin at the end of March 2026, several measures will be debated that could directly increase the cost of living for families and fundamentally alter their lives. The coalition is considering abolishing income splitting for married couples, ending free family health insurance coverage for spouses, and introducing new incentives to discourage part-time work. The triggers are the financial problems of the social security funds, the labor shortage, and the political will to encourage more people to work longer hours. This is precisely where the issue lies. The state not only wants to secure revenue but also influence the behavior of married couples. Single-earner households, families with children, and couples who organize caregiving, eldercare, and work differently than the government apparently prefers will be affected.
Families to Pay for Tax Reform
Finance Minister Lars Klingbeil has announced plans to abolish joint taxation for married couples “in its current form for future marriages.” With this move, the coalition is attacking a firmly established component of German tax law. This is not a minor adjustment, but a targeted overhaul. The state intends to define which family models it will still accept for tax purposes and which it will no longer accept.
Joint taxation of married couples takes into account that spouses live together economically and are committed to supporting each other long-term. This is precisely why it provides relief to households with unequal income distribution. Dismantling this mechanism would primarily burden couples where one partner earns more and the other devotes more time to children, household chores, or relatives. The coalition is selling this as modernization, but the measure will primarily affect those who live their marriage as a shared responsibility.
Family insurance to become a new source of revenue
The debate surrounding statutory health insurance is even more serious. Currently, spouses without their own income or with low earnings can be co-insured free of charge under certain conditions. This principle follows the solidarity principle of the statutory health insurance system. Nevertheless, the coalition is considering introducing new contributions specifically for this system.
A minimum contribution of around €225 per month is under discussion. For many households, this would represent a significant cut, as this amount would be incurred month after month. It would particularly affect parents with young children, those with caregiving responsibilities, or those with a consciously chosen division of labor. While the government talks about financing, it is directly and massively dipping into families’ finances. The burdens don’t disappear, they merely shift.
Part-time work is to become less attractive
At the same time, the coalition wants to steer more people from part-time to full-time work. Officially, it says that no one will be forced to work more. Simultaneously, the government is planning tax breaks for bonuses if employees increase their hours or switch to full-time. The state is thus establishing a clear policy. More paid work is to be rewarded, while other lifestyles lose ground.
Part-time work is often not a convenient option for parents, but a practical necessity. Childcare, school hours, caring for relatives, and rising everyday costs shape this decision. Those who ignore this view see families merely as a labor reserve. This perspective is clearly evident in the current debate. Family is portrayed not as an achievement, but as an obstacle to more working hours.
The sum of these plans will impact families in several ways simultaneously
The interplay of the proposals is particularly explosive. If joint taxation for married couples is partially eliminated, the tax burden will increase. If, in addition, the free co-insurance coverage is abolished, fixed expenses will also rise. If, at the same time, new incentives against part-time work are introduced, the financial flexibility for many households will be further reduced.
This results in a clear political course. The coalition wants to steer married couples and parents more strongly toward a model with more paid employment, higher taxes, and less independent division of responsibilities. Those who care for children, look after relatives, or consciously live a traditional family model will feel the financial consequences in the future. This is not a technical overhaul, but an intervention in the lives of millions with corresponding social repercussions. (KOB)