Local German municipalities are calling for a comprehensive overhaul of the social welfare system, alongside proposed changes to the citizen’s income program. Concerns are mounting over escalating costs and administrative burdens within the social aid sector.
André Berghegger, Managing Director of the German Association of Cities and Municipalities (DStGB), highlighted the significant increase in social welfare expenditure over the past 15 years. He attributed the rising costs, in part, to the current system’s reliance on individual case assessments for each person in need of assistance. “The question is whether we can and must continue to afford this level of individualized consideration” Berghegger told the “Neue Osnabrücker Zeitung” (NOZ).
Drawing parallels with the long-term care insurance system, where individuals are categorized into defined tiers to determine the level of support provided, Berghegger advocates for the introduction of more standardized, package-based approaches to social welfare. Transitioning from individualized assessments to a complete form of standardization, according to Berghegger, would significantly simplify decision-making processes and allow for substantial reductions in personnel costs. “This would be a substantial contribution to relieving the burden on municipalities. If we cannot get a handle on the cost increases, all special funds will be of no help”. Municipalities are facing a precarious financial position and are increasingly unable to provide comprehensive services.
The Association of District Administrators of Germany (DLT) echoes this sentiment. President Achim Brötel described the relentless pursuit of extreme granularity in individual case assessments as a “typically German phenomenon” noting that equivalent concepts are largely absent from English, French, Italian, or Spanish languages. He suggested that significant potential for simplification exists within the system without necessarily compromising essential support.
Municipalities are now pinning their hopes on the “Future Pact” – an agreement between the federal government, state governments and municipalities. They urge the Pact to implement measures to limit the continuously rising expenditure. Berghegger points to a commitment in the governing coalition agreement that acknowledges the overly complex administration of social benefits. Both the Union and the Social Democrats have pledged to “consequently merge and simplify social law foundations, procedures and jurisdictions”.