Overview

• The Bundesrechnungshof told the Bundestag budget committee that Jobcenters still fail to sufficiently activate employable beneficiaries and place them in work, according to a report seen by Politico.
• Auditors said available employment potential remains untapped and cited process deficits, with some recipients unreachable for months or even years and missing advisory appointments.
• The stricter 2024 rule for cutting benefits after repeated refusal of suitable work has been applied only in a low double‑digit number of cases nationwide, delivering no expected savings.
• Chancellor Friedrich Merz and Labor Minister Bärbel Bas have announced a fast overhaul of the system, with a small cross‑party team preparing proposals for tougher and quicker penalties within court limits.
• Reporting by Reuters and Süddeutsche Zeitung indicates the plans under discussion include faster cuts of up to 30%, possible termination for completely unresponsive claimants, tighter rules on housing costs, and quicker drawdown of assets, while Bürgergeld spending totaled about €51.7 billion in 2024.