Overview

• The Bundesagentur für Arbeit reported a 10% increase in Bürgergeld spending for 2024, totaling €22.1 billion for benefits and €17.7 billion for housing and heating allowances.
• The CDU has renewed its push to abolish Bürgergeld, citing unsustainable costs and inefficiencies in the current system.
• SPD and CDU leaders have agreed on a blueprint to replace Bürgergeld with a stricter welfare model, emphasizing mandatory work participation and harsher sanctions for non-compliance.
• A Bertelsmann Stiftung study revealed up to 70% of Jobcenter funds are allocated to administration, limiting resources for employment promotion.
• The proposed reforms aim to balance fiscal discipline with adherence to Federal Constitutional Court rulings on welfare policies.