Germany's citizen's income faces criticism for bureaucracy costs

Germany's social welfare system, specifically the Bürgergeld program, is facing criticism over high administrative costs. The Bürgergeld provides financial support to about 5.4 million people, including the unemployed and working poor, but a new study reveals that a significant portion of funding is spent on bureaucracy rather than helping people find jobs. The Bertelsmann Foundation study shows that Jobcenters, which manage the Bürgergeld, may use up to 70% of their budgets on administrative expenses. In 2024, these centers were allocated 10.7 billion euros, with administrative costs rising by 39% over the past ten years. Experts call for major reforms to better address the diverse needs of benefit recipients. Among Bürgergeld recipients are 1.5 million children and 2.2 million adults who cannot work due to various reasons such as training or caregiving. Of the 1.7 million who can work, many lack vocational training, limiting their job opportunities. Data indicates that the successful integration of the unemployed into the workforce has decreased since the program's launch. The current government, led by Chancellor Olaf Scholz, aimed to improve welfare with the Bürgergeld, replacing the unpopular Hartz IV system. However, this has led to political tensions, especially with conservative leaders who criticize the program. Critics argue that financial incentives lead some workers to prefer benefits over employment. The debate has intensified as the far-right Alternative for Germany (AfD) gains support by targeting non-citizen recipients of Bürgergeld. They argue against welfare, despite most benefit recipients fulfilling legal residency requirements. Calls for stricter penalties for individuals not actively seeking work have also emerged, although experts emphasize that the real problem lies with bureaucratic costs rather than the recipients themselves. The Bertelsmann study advocates for a complete reform of funding allocation, emphasizing the need for personalized support for people reentering the workforce. Analysts argue that the current system fails to recognize the unique challenges faced by unemployed individuals. Overall, the future of Germany's welfare program remains a contentious issue during coalition negotiations.