This paper investigates the impact of extending disposable cash income of children by the monetary value of private and public childcare provision on economic inequality in Germany between 2009 and 2012. It takes account of the multidimensionality of children's well-being and access to economic resources. Combining survey data from the Socio-Economic Panel (SOEP) and Familien in Deutschland (FiD) with administrative data from the German Federal Statistical Office, extended income inequality is found to be significantly lower than cash income inequality across all years. In addition, extended income inequality tends to decrease over time, whereas cash income inequality slightly increases. This difference is due to the expansion of public childcare provision, which profits children living with single parents most, and gives additional evidence for its equalizing potential as a policy instrument.