Social assistance spending in Germany to rise by 18 percent in 2023
Social welfare spending in Germany increased by 18 percent last year. In 2023, social welfare agencies spent 17.6 billion euros net on services such as basic old-age security or care assistance, as reported by the Federal Statistical Office on Friday in Wiesbaden.
The largest share of social welfare spending, at 57.2 percent, went to basic old-age security and disability benefits. These services amounted to 10.1 billion euros, an increase of 14.5 percent compared to the previous year.
A total of around 1.5 billion euros (an increase of 16.4 percent) was spent on assistance for living expenses, when people cannot cover their necessary living expenses on their own or with the help of others, such as their children. Around 1.6 billion euros was spent on health assistance, help to overcome special social difficulties, and assistance in other life situations, an increase of 17.9 percent from the previous year.
The increase in social welfare spending is partly due to the fact that in 2022, spending on care assistance decreased significantly as a result of the care reform, leading to lower overall social welfare spending. In 2023, care spending increased again by more than 27 percent to around 4.5 billion euros.
A total of 25.4 billion euros was spent on integration assistance services, which include support for housing and leisure activities, as well as therapeutic services. This was 9.4 percent more than in the previous year.
Although basic old-age security and disability benefits account for the majority of social welfare spending, there are also significant investments in other areas. For instance, assistance for living expenses saw a 16.4% increase, while health assistance, help to overcome special social difficulties, and assistance in other life situations experienced a rise of 17.9% last year.
