Social affairs: analysis of citizens’ money: too much money for the administration

According to a study, the citizen benefit, which is to be radically reformed according to the announcement of the probably future Chancellor Friedrich Merz (CDU), has weaknesses and defects in several respects. From many job centers responsible for the citizens’ allowance, too much money is spent on managing instead of promoting employment, according to an analysis by the Bertelsmann Foundation.

The principle of “demanding and promoting” should focus more on the focus. It takes more transparency, the social service system has to be easier overall.

Who receives civil allowance and why?

Around 5.4 million people in Germany are currently receiving benefits from the citizens’ allowance. Around 2.7 million people are not available to the labor market because they are currently not able to work, the study says. Among them are people who are in training or further education that relatives maintain, but also many children.

Another around 830,000 recipients of this social benefit are so -called top -ups – the earning income is not enough for them. According to the foundation, around 1.9 million citizens’ fees are unemployed.

The citizen benefit had replaced the Hartz IV system in early 2023. The Union also carried the socio -political prestige project of the traffic lights after it was able to enforce tightening in a mediation procedure by the Bundestag and the Federal Council. However, many soon came into disrepute.

“We will redesign the previous civil allowance system, towards a basic security for job seekers,” Merz said after the exploratory talks with the SPD. “For people who can work and repeatedly refuse to work, a complete deprivation of performance is carried out.”

A reform of the administration is also warned

The job centers are responsible for the care, which, according to the 2024 foundation, were available for a total of around 10.7 billion euros. It is up to them how they divided the assigned state funds between administration and employment promotion.

In recent years, the costs for the administration have increased significantly, but the funds to promote benefits have remained. “Some job centers move up to 70 percent of these funds to the administration,” criticizes the foundation. How many people in the end bring the job centers to work, play “a subordinate role”.

A stronger accent on the “promoting and demanding” of those affected is necessary, which is too little on both sides. Many unemployed citizens of citizens need greater individual support in view of several means of mediation. Special younger people have to be offered more qualification and further education.

Sanctioning earlier and reinforcing incentives

Since the introduction of the citizens’ allowance, the number of successful integrations into the labor market has dropped by around six percent, the analysis criticized. In order to get better here, it should also be sanctioned earlier and more consistently – but “moderately” – when duties for citizens benefit. So miss appointments or reject offers.

Another shortcoming is that with increasing gross earnings, both the citizens’ allowance as well as housing benefit and child surcharge are melting. In the end there is only a little more net income left – overtime work is often not worthwhile.