Overall, children in Germany live in households with below average incomes; therefore social policies that address the vulnerable position of Germany’s children are necessary. These policies should cover targeted financial transfers as well as improvements in day care provision for children....

In general child care subsidies are widely accepted as a means to create equal chances for mothers in the labour market as well as for children. Although there is a general consensus that the use of child care should be publicly supported, there is no consensus on how this should be done....