A former head of the Federal Employment Agency, Detlef Scheele, is calling for legislative changes to the Bürgergeld (social welfare benefits) reform to curb social welfare fraud involving criminal networks. Speaking to the Süddeutsche Zeitung, Scheele highlighted a concerning trend where individuals, often EU citizens from countries like Romania and Bulgaria, are being registered at derelict properties, allegedly holding precarious mini-jobs and receiving supplementary benefits.
He described the situation as having evolved into “an increasingly larger business model” where organizers profit from the system, often acting as landlords of substandard housing and claiming inflated rental costs from the Jobcenter (employment office). The costs of accommodation are currently covered as part of the Bürgergeld payments.
Scheele specifically pointed to Paragraph 7 of the Social Code II and the need for adjustments to EU law, stating the Bürgergeld reform must secure the definition of “gainful employment” to prevent the financing of entire households based on fraudulent employment certificates. He expressed surprise that this particular paragraph hasn’t received more attention.
The issue centers around the criteria for receiving Bürgergeld. Current regulations surrounding the free movement of EU citizens lack precise stipulations regarding the level of employment needed to qualify for additional welfare benefits, making a mini-job sufficient in some instances.
The situation is particularly acute in cities like Duisburg and Hagen, where reports of individuals from Romania and Bulgaria accepting mini-jobs and being registered at dilapidated properties, facilitating claims for Bürgergeld and housing costs, have been widespread.
Carsten Linnemann, General Secretary of the Christian Democratic Union (CDU), has previously proposed changes at the EU level to ensure a mini-job is not enough for EU citizens to qualify for Bürgergeld and housing benefits. This sentiment is echoed by Sören Link, the SPD mayor of Duisburg, who stated that “poverty migration from Southeastern Europe is bringing organized abuse of social benefits to Duisburg” and that it must end. The city’s Jobcenter reports around 11,000 Romanians and Bulgarians currently receiving Bürgergeld.
The head of the Duisburg Jobcenter, Frank Böttcher, explained that a mini-job alone can entitle an EU migrant to supplementary Bürgergeld, with the Jobcenter covering the difference between the mini-job wage and the full benefit amount, including family members. Böttcher noted the presence of a company employing numerous Bulgarians and Romanians solely on mini-jobs, all of whom subsequently claim Bürgergeld. He supports the call from the CDU that an EU migrant should only be eligible for benefits after undertaking work with a significantly greater volume than a mini-job.