Benefit Overhaul Expected This Fall

Benefit Overhaul Expected This Fall

Germany’s Federal Minister for Labour, Bärbel Bas (SPD), has announced plans to introduce reforms to the Bürgergeld system – a key social welfare program – later this autumn.

Speaking on the ARD program “Bericht aus Berlin” on Sunday, Minister Bas stated that her ministry has already developed proposals. Securing agreement on the precise direction of reform within the governing coalition is now the crucial step.

Bas advocated for strengthened obligations for Bürgergeld recipients and stricter sanctions, particularly regarding unexcused absences from appointments at Jobcenters. She explained that Jobcenter employees have expressed the need for such tools.

Furthermore, the minister indicated a commitment to intensified measures against Bürgergeld recipients engaging in social benefits fraud, such as through unreported work. To facilitate swift action, the customs agency (Zoll) will immediately share findings with Jobcenters, enabling the rapid cessation of unlawful payments.

Looking ahead, Bas confirmed the planned establishment of a commission to reform the statutory pension insurance system in January 2026. She emphasized that the commission’s work won’t begin from scratch, but will build upon existing proposals already under consideration. The coalition government will need to determine which of these proposals can be implemented within the current parliamentary term.