This proposal is detailed in a report by the Government Commission on Welfare State Reform, prepared for publication this Tuesday, with contents reported by the Süddeutsche Zeitung.
The report contains 26 specific recommendations designed for swift implementation. According to the document, the welfare state should become simpler and more digitalized, ensuring that aid reaches recipients through a more targeted approach.
Streamlining the Social Security System
The plan involves merging the future basic security system—the current Bürgergeld—with housing benefits and child supplements. While basic security guarantees a subsistence level for those in need, housing benefits and child supplements are currently available to low-income earners who are not directly dependent on basic security.
Previously, these separate payments were intended to prevent citizens from having to visit local Jobcenters. However, this led to a situation where people had to submit multiple applications to different agencies, which often redirected them to one another. The reform is designed to end this fragmentation.
Ending the “Poverty Trap” and Bureaucratic Ping-Pong
Another issue with the current complex system is the lack of coordination between different types of aid. Currently, if a recipient increases their working hours—for example, a mother switching from part-time to full-time employment—it can have negative consequences. Despite working significantly more, the family might end up with no additional disposable income because higher earnings lead to a sharp reduction in state benefits. The commission emphasized the necessity of changing these income-offsetting rules.
Furthermore, the reform aims to stop the practice of “bureaucratic ping-pong.” The commission proposed a clear division of labor:
- Jobcenters will be responsible for all recipients who are fundamentally fit for work (capable of working at least three hours a day).
- Municipal Social Services will handle all others, such as those unable to work.
To create a completely unified administrative structure, a change to the Basic Law (Grundgesetz) is required. The report calls for an immediate amendment to Article 91e, which currently prescribes a different distribution of powers.
Digital Relaunch and Automatic Benefits
As part of a digital overhaul, a comprehensive data exchange between federal, state, and local social agencies is planned. Authorities should be able to transfer data internally, sparing citizens from repeatedly entering the same information into lengthy forms. In the future, child benefits are intended to be paid automatically following a birth without the need for an application.
Unlike previous pension commissions, this body did not consist primarily of academics. Instead, the proposals were developed by state actors from federal, state, and municipal levels, including eight federal ministries and representatives from Bavaria, North Rhine-Westphalia, and Hamburg. The process was led by the Ministry of Labour.
Source: Süddeutsche Zeitung
Latest Posts
