The German federal government together with the Länder and municipalities has decided to combine the Bürgergeld, the Kinderzuschlag and Wohngeld into a single welfare payment. This recommendation comes from a report by a government commission on social‑state reform, which is slated for publication on Tuesday and covered by the “Süddeutsche Zeitung” that same day.
The report sets out 26 concrete proposals that participants want to be implemented quickly. Its main themes are a simpler, more digital social state and more targeted assistance for recipients.
Under the proposed overhaul, the current basic security for the needy-previously called the Bürgergeld-would be merged with the housing allowance and the child supplement. The basic security guarantees a minimum standard of living for the unemployed or poor. In contrast, Wohngeld and Kinderzuschlag target people who earn little but are not dependent on the basic security, such as earners with children. At present beneficiaries often have to visit local Jobcentres to receive these payments, which creates a bureaucratic burden: many people must submit separate applications to several authorities and are sometimes forwarded from one office to another. The reform aims to eliminate this “ping‑pong” between offices.
Another problem highlighted is the lack of coordination among the many forms of assistance. If a beneficiary-for example a mother on unemployment benefits-extends a part‑time job to full time, she could face a situation where a higher income leads to a sharp reduction of state payments. Even though she works more, the net amount in her account may not rise because the increase in earnings triggers large cuts to Wohngeld or basic security. The commission therefore wants to revise the current rules of income calculation.
To stop these inter‑agency hand‑offs, the commission proposes a clear division of labor. For all recipients who are at least partly able to work-that is, who can work at least three hours a day-the Jobcentres would become the primary service provider. All other cases, such as people who are unable to work, would fall under the jurisdiction of municipal social offices. Achieving a “fully unified administrative structure” would however require a constitutional amendment. The report states that this change should be pursued “as soon as possible”. It notes that Article 91 e of the German Constitution currently prescribes a different division of responsibilities.
The commission also envisions a “digital restart of the social state”. This would involve comprehensive data sharing between federal, state and municipal authorities-between Jobcentres, municipal social offices and Wohngeld offices. By exchanging data, the agencies could avoid requiring citizens to repeatedly enter largely identical information into long forms for each application. Automatic disbursement of child benefit upon birth, without a separate application, would likewise be a part of this digital initiative.
Unlike the pension commission, the body on social‑state reform was not dominated by academics; its proposals were largely crafted by state and local actors themselves. Its membership included eight federal ministries, the states of Bayern, Nordrhein-Westfalen, Hamburg and others, and municipal leaders such as the Städtetag. The commission was led by the Federal Ministry of Labour and Social Affairs under Bärbel Bas of the SPD.