A senior figure within the German Green Party’s parliamentary group, Andreas Audretsch, has highlighted substantial potential savings within the ongoing reform debate surrounding the Bürgergeld (Citizen’s Allowance) system, specifically focusing on housing costs. Audretsch argues that the core issue lies not with the recipients of the allowance, but with large corporations driving up rental prices and profiting from the state’s contribution towards accommodation expenses included within the Bürgergeld.
To achieve savings, Audretsch proposes government intervention aimed at regulating rental costs. He further suggests empowering job centres to actively challenge and penalize exorbitant rental fees – defined as those significantly exceeding, by 20 to 30 percent, the standard local rate. Such measures, he believes, could unlock significant potential for cost reduction.
The escalating expenditure on housing for Bürgergeld recipients illustrates the magnitude of the issue. In 2011, state spending in this area totaled 14 billion euros; last year, that figure rose to 18 billion euros-a 4 billion euro increase. Audretsch maintains that focused action against practices employed by major real estate companies, within the framework of the Bürgergeld system, presents a significant opportunity for financial optimization.