Hamburger 'SocialCard' - Judgments fuel dispute over payment cards
Discussion about Hamburg's Refugee Payment Card and the accompanying limited cash availability is being fueled further by decisions from Social Courts, even within the red-green Coalition. While the Greens continue to advocate for an unlimited Payment Card, the SPD insists on maintaining a cash limit.
Background is a decision by the Hamburg Labor Court, which dismissed a complaint from an asylum seeker against the Payment Card. In its final, unappealable ruling, obtained by the German Press Agency, the court states that the cash regulation imposes no significant disadvantages for the applicant. Previously, the plaintiff's complaint against the rejection of his application for an expedited procedure had failed in the first instance.
The court considers it reasonable that the applicant "should receive the benefits for his personal needs according to the Asylseekers Benefits Act (AsylbLG) for the duration of his stay in the reception facility, at least until the final decision, the benefits for the necessary personal needs in cash." According to the ruling.
Court: 50 Euro in cash sufficient for personal needs
Constitutionally, it is generally permissible to secure the minimum existence through money, but also through goods or services. "The Payment Card allows the applicant to withdraw a part of the benefits for personal needs in cash and pay the remaining part for goods and services wherever a payment with a Visa credit card is possible," the court added.
In the case of a refugee family, the Social Court had previously come to a different decision - albeit only in the preliminary proceedings. Here, it was decided that rigid cash limits were not suitable for covering additional needs, such as those of pregnant women or families with young children.
Refugee family previously successful in expedited procedure with complaint
The applicant in the expedited procedure was a refugee family with a child born in 2022, who were expecting their second child this year. They demanded more cash or a deposit of the additional needs into another account. The family currently receives a cash allowance of 110 Euro. The court granted them a cash requirement of 270 Euro. Decisions in expedited procedures are preliminary and not yet legally binding. The Interior and Social Authorities have announced that they will examine the complaint. The current practice will be maintained in the meantime.
The Society for Civil Rights, which prepared and accompanied both proceedings according to their own statements, pointed out that the Hamburg Labor Court only dealt with the applicant's application for an expedited decision. The legality of the Payment Card or the cash limit was not decided upon. Verfahrenskoordinatorin Lena Frerichs confirmed this.
The Interior Authority sees Hamburg's "SocialCard" confirmed by the decision.
The SPD-led interior and social welfare offices remain "clear confirmed" by the new decision, according to a spokesperson for the interior department of the dpa. "We are still convinced of the legality of the deployment and the design of the SocialCard. The decision of the Landessocialcourt contains no indications to question this." The card guarantees easy access to benefits and is designed so that the state-provided financial resources are actually used for living expenses.
Adult benefit recipients receive 185 euros written off on the card monthly. Of this, up to 50 euros monthly per adult and an additional 10 euros per child in families can be withdrawn in cash from ATMs.
Red-green dispute over payment card rekindled
"We have warned from the beginning that cash withdrawal limits from the payment card could create a bureaucratic monster. Exactly that is now likely to happen, following the complaint of the pregnant woman," said Mareike Engels, social policy spokesperson for the Green-Fraktion. She warned: "Thousands of individual case reviews would further overload the Office for Migration. That's why we are advocating for a withdrawal of the limits and a payment card without restrictions."
The SPD has a different opinion: "A state that pays social benefits can expect that they will only be used for existence securing," said SPD social expert Annkathrin Kammeyer. The "SocialCard" should enable faster, simpler, and stigma-free use of social benefits. "First insights into the project suggest that the SocialCard is proving itself." It is clear that the height of the cash withdrawal amount must correspond to the needs and be continuously evaluated.
Opposition: Payment card reveals deep rift within Red-Green
The continuing dispute between SPD and Greens shows "the deep rift within the red-green coalition in addressing fundamental questions and challenges of our time," said recently defected citizen's representative Anna von Treuenfels-Frowein from the CDU. "A senate that is so divided in fundamental decisions for our city cannot be afforded by Hamburg." The view expressed by the Landessocialcourt that a cash withdrawal limit is generally constitutionally permissible was described as "encouraging and correct in substance."
- The SPD, despite the disagreements within the red-green Coalition, continues to support the cash limit on Hamburg's Refugee Payment Card, arguing that the state should expect its social benefits to be used solely for securing existence.
- The judgment by the Social Court in Hamburg, obtained by the German Press Agency, declared that the cash regulation for asylum seekers does not impose significant disadvantages and is within constitutional limits, allowing a part of the benefits to be withdrawn in cash.
- The SPD-led interior and social welfare offices have been "clear confirmed" by the decision of the Landessocialcourt regarding the legality of the 'SocialCard' and its design, which guarantees easy access to benefits for living expenses.
- The Greens, in opposition to the SPD, have criticized the cash withdrawal limits from the payment card, warning that it could lead to a bureaucratic monster and hundreds of individual case reviews, potentially burdening the Office for Migration.
- According to the German Press Agency, a refugee family had previously won an expedited procedure with a complaint against the strict cash limits, arguing that they were insufficient to cover additional needs, such as those of pregnant women or families with young children.
