Unemployment Benefit - Social Security: Debate over stricter Rules
Before the backdrop of significantly increased expenditures for Social Benefits (Unemployment Benefits II), politicians from the Union, FDP, and AfD are putting pressure to further tighten the rules for this social benefit. "Social Benefits have not met expectations and therefore need to be further reformed," said Federal Finance Minister Christian Lindner in the ARD-"Summer Interview". CDU General Secretary Carsten Linnemann spoke in favor of completely eliminating social benefits for more than 100,000 people. This sparked sharp criticism from the SPD.
Lindner: "More Consequences for Freeloaders"
Lindner, looking at the federal budget, said: "We don't have too little money, but we have too high expenditures." He spoke of significantly increasing social expenditures. "This is also related to the irregular immigration to Germany since 2015. A major challenge will therefore be to rebuild our social state. In short: more empathy for the needy, but more consequences for freeloaders."
Linnemann said to the newspapers of the Funke Media Group: "The statistics suggest that a six-figure number of people are fundamentally not willing to accept work." If someone is fundamentally unwilling, the state must assume that this person is not in need. "Then the basic security must be completely abolished."
SPD: Beneficiaries are defamed as lazy
The SPD reacted with sharp criticism: "Defaming working people in Germany with the label of 'unemployment benefit recipients' in a random large scale as lazy - and threatening to completely abolish the benefit with a constitutionally questionable move," said the deputy chairwoman of the SPD parliamentary group Dagmar Schmidt to the Funke newspapers.
Regulations are already being tightened
The German government has announced regulatory tightening for Social Benefits to encourage more recipients to take up work. This includes a longer path to work, sanctions for rejecting suitable work, and also penalties for black market work leading to benefit reductions. These measures are part of the so-called Growth Initiative of the Traffic Light Coalition, which primarily aims to get the stagnating economy back in motion. "I think it's good that the Traffic Light Coalition is taking a first step with Social Benefits," said Linnemann. However, it needs a fundamental policy change – towards a new basic security.
Expenditures have significantly increased
Germany spent approximately 42.6 billion Euros on Social Benefits last year, compared to 36.6 billion Euros the previous year, according to a response from the Federal Government to an AfD parliamentarian René Springer's inquiry. Another inquiry by Springer on the share of minors in Social Benefits revealed that about 5.6 billion Euros were spent on minors under 18 years old. The yet unpublished data were available to the German Press Agency.
The relationship between foreign and German children and adolescents in Social Benefits has changed over the years, according to this: In 2010, there were about 1.37 million German and 304,000 foreign minor Social Benefit recipients. By the end of 2023, the ratio was 907,000 to 894,000. Expenditures are exceeding the limit, criticized Springer and demanded the "elimination of the long-standing and the additional incentives for migration into the social systems created by the Traffic Light Coalition."
Social Benefits are adjusted annually
The citizen's income was on average increased by approximately twelve percent at the beginning of the year compared to 2023 - for singles this meant an increase from 61 to 563 Euro per month. The regulation is adjusted annually to prices and wages and also takes inflation into account. Social Minister Heil (SPD) had stated that if inflation now significantly decreases, the next adjustment will be correspondingly low. The necessary data will be provided by the Federal Statistical Office in the summer.
No increase in the next year?
Finance Minister Lindner has repeatedly expressed the expectation that the rates in 2025 will not rise again and confirmed this in the ARD "Summer Interview". In the next year, there will be no increase in citizen's income, he said. "It will not be raised, while the working population will be relieved of payroll and income tax. This widens the gap again, which the population also expects."
- Christian Lindner, the Federal Finance Minister, advocated for more consequences for individuals who misuse Unemployment Benefits II, citing high expenditures as a concern.
- Carsten Linnemann, the CDU General Secretary, suggested eliminating Unemployment Benefits for over 100,000 people who refuse work, a proposal met with criticism by the SPD.
- Lindner highlighted the need for empathy towards the needy while also enforcing consequences for freeloaders, in relation to significant increases in Social Benefit expenditures.
- Linnemann argued that statistics indicate a large number of individuals are unwilling to work, and if they are fundamentally unwilling, they should not receive welfare benefits.
- The SPD criticized the labeling of working people as lazy Unemployment Benefit recipients, and the proposal to completely abolish the benefit, viewing it as constitutionally questionable.
- The German government has implemented regulatory tightening for Social Benefits to encourage work, including longer paths to employment, sanctions for rejecting suitable work, and penalties for black market work.
- AfD parliamentarian René Springer inquired about the increase in Social Benefit expenditures and revealed that about 5.6 billion Euros were spent on minors under 18 years old in 2023.
- The relationship between foreign and German children and adolescents in Social Benefits has shifted over the years, with expenditures exceeding the limit, leading Springer to demand the elimination of incentives for migration into social systems.
- Social Minister Heil (SPD) mentioned that if inflation significantly decreases, the next adjustment to the citizen's income will be correspondingly low, ensuring the regulation remains in line with prices and wages.
