Benefit Sanctions Fail Audit

Benefit Sanctions Fail Audit

A recent audit by the Federal Court of Audit (Bundesrechnungshof) has concluded that current sanction practices within the Bürgergeld (basic income support) system are ineffective. The findings, detailed in a report submitted to the Bundestag’s budget committee on Thursday and reported by the Süddeutsche Zeitung, stem from an examination of 265 randomly selected cases marked as non-cooperative within Job Centers (employment agencies).

The audit revealed recurring issues in these instances, with Job Centers frequently encountering similar challenges. The report includes direct excerpts from Job Center documentation illustrating the difficulties, such as one case stating, “The client consistently fails to attend appointments. Unfortunately, there’s no possibility to completely halt benefits. Sanctions up to 30 percent produce no success – they are irrelevant to the client.

The investigation uncovered cases of Bürgergeld recipients who had never engaged in a consultation with their Job Center’s employment services, with some experiencing a complete lack of contact for years. One stark example highlighted by the audit indicated the absence of contact for almost 15 years, while another cited a last consultation occurring nearly twelve years prior.

The findings are particularly noteworthy in light of a 2019 ruling by the Federal Constitutional Court, which affirmed that the dignity of individuals entitled to basic income support is inherent and cannot be forfeited, even through perceived “undignified” conduct. While sanctions remain permissible, the court deemed reductions in benefits exceeding 30 percent of the standard rate to be unconstitutional.

Current discussions are underway, spearheaded by Labour Minister Bärbel Bas (Social Democratic Party) and Federal Chancellor Friedrich Merz (Christian Democratic Union), regarding potential tightening of Bürgergeld regulations. A draft bill outlining these proposed changes is expected to be released shortly.