- Social assistance expenditure increased significantly
Social assistance expenditures increased significantly last year. The Federal Statistical Office recorded an increase of 18 percent compared to the previous year. In total, the carriers spent net 17.6 billion euros. The increase affected all services under the twelfth book of the Social Code (SGB XII), including basic security in old age and in case of reduced earning capacity.
According to the statements, the reasons for this development include the effects of the care reform on January 1, 2022, which initially led to a significant decrease in spending on care assistance in 2022. As a result, overall social spending was lower that year. In 2023, statisticians recorded an increase of 27.4 percent in spending on care assistance to almost 4.5 billion euros.
In 2023, the majority of funds, 57.2 percent, went to basic security services in old age and in case of reduced earning capacity. This amount increased by 14.5 percent to 10.1 billion euros. For assistance with living expenses, 1.5 billion euros were spent, an increase of 16.4 percent.
Assistance for health, overcoming special social difficulties, and assistance in other life situations totaled 1.6 billion euros. This was an increase of 17.9 percent compared to the previous year, as calculated by the Federal Office.
Following the increase in social assistance expenditures, advocates are pushing for further investments in these programs. Recognizing the importance of social assistance in addressing societal issues, they argue that more resources should be allocated to ensure adequate support for individuals in need.
Given the significant rise in social assistance expenditures related to basic security services in old age and reduced earning capacity, there's a growing concern about the long-term sustainability of these programs without additional funding or reforms.
