Social benefits - South-Labour-Minister for radical reform in social benefits
Baden-Württemberg's Labor Minister Nicole Hoffmeister-Kraut calls for radical changes to Unemployment Benefits. The CDU politician told the German Press Agency: "Unemployment Benefits – initially celebrated as a great success by the traffic light government – is increasingly turning into a flop: too expensive, too bureaucratic, too complex and yet unsuccessful. And so unsuccessful that even the SPD has come to doubt it and wants to save what cannot be saved." A targeted and fundamental reform is necessary - without thinking bans.
The Labor Minister proposed a new social safety net that would focus on encouraging and demanding. "We need a welfare state that activates people and does not push them aside. We need a paradigm shift: 'working less' has served as a socially desirable goal. We must set clear performance incentives and make overtime attractive again."
Traffic Light Government plans reform
The Federal Government plans to encourage more recipients of Unemployment Benefits to take up work with stricter rules. So, in the future, a longer way to work should be acceptable, rejecting a viable job should result in increased benefit reductions, and black work should lead to reductions. These and other measures are part of the so-called Growth Initiative of the Traffic Light Government, which primarily aims to get the stagnating economy back in motion.
In March, there were 501,031 recipients of Unemployment Benefits in Baden-Württemberg. According to the ministry's statements, approximately 71 percent of them were capable of working. Not all incapable-to-work benefit recipients were immediately available for the labor market, as they were either undergoing a labor market policy measure at the Jobcenter or attending an integration course. These persons are therefore not considered unemployed, but rather seeking employment.
- The SPD in Baden-Württemberg has voiced its support for the Labor Minister's call for reform, acknowledging the need for change in the current Unemployment Benefits system.
- The proposed reform includes the introduction of 'Citizen's Income', a social benefit that aims to simplify and reduce the complexity of the existing Unemployment Benefits system.
- The reform, if enacted, could potentially have a significant impact on the labor market in Stuttgart and other cities in Baden-Württemberg, potentially reducing the number of unemployed individuals.
- The German Press Agency reported that even the SPD, one of the main parties in the Traffic Light Government, has questioned the effectiveness of Unemployment Benefits and is open to discussions about 'Social' welfare reforms that encourage employment and self-sufficiency.
- The CDU, as part of the federal government, is working on a broader plan to boost the economy, involving measures to encourage more employment, including potential changes to Unemployment Benefits, as advocated by Minister Hoffmeister-Kraut.
