Budget for social affairs | Citizens' income becomes a systemic issue

Two warnings were issued in the budget debate on the social and labor budget. One was given to an AfD politician for a derogatory formulation, and the other to Tamara Mazzi (The Left). Her address, "Madam President, dear colleagues of the democratic parliamentary groups," contradicted the Bundestag's agreement on "non-exclusive greetings."

Despite this, and some criticism from the opposition, the debate was surprisingly calm. The budget of the Federal Ministry of Labor and Social Affairs remains the largest expenditure item in the federal budget this year. Expenditures of €190.3 billion are planned. This represents more than a third of the total budget and an increase of €14.63 billion over the previous year. However, many key elements of the social budget are guaranteed by law and therefore offer little room for political negotiation. The lion's share goes to pension insurance and basic security in old age and in cases of incapacity for work. The draft provides €134.38 billion for this (2024: €127.3 billion).

Lion's share of pensions

This is intended to secure the pension level at 48 percent and also standardize the mother's pension. Specifically, childcare periods for children born before 1992 are to be credited with three pension points in the pension account. For Carsten Linnemann (CDU), this Friday was a "day for the economy and thus also a perfect landing for the labor market." This was also because the coalition's pension policy would now "make life easier for those who can and want to work longer." This is a reference to the planned "active pension" that will make starting work more flexible.

Criticism came from Alliance 90/The Greens. Leon Eckert, for example, described the pension package as unambitious. "Social affairs ministers of the past 30 years have also known that people age," he said, referring to what he considered inadequate pension policy interventions by the CDU/CSU and SPD. According to Sara Vollath (The Left Party), the pension budget has declined relative to the federal budget, even though one in four euros of the budget now goes toward pensions.

She called for a pension system into which everyone contributes , as well as an increase in pension levels: "Just be brave and raise the pension level to 53 percent." Pensions, she said, are not a generational conflict, but a conflict "between the politicians' super-rich friends" and those people "who work themselves to death their entire lives and then have to collect deposits." The increase in working hours in retirement and the incitement against recipients of the citizen's allowance go hand in hand as a class struggle from above, according to her party colleague Mazzi.

Citizen's income as a systemic issue

Citizen's income remained the focus of Friday's Bundestag debate. It is now set at €29.6 billion, compared to €26.5 billion in 2024. Plans call for €4.1 billion for integration into employment (2024: €4.15 billion). Some people want to cut "active labor market policy, of all things," criticized Labor and Social Affairs Minister Bärbel Bas (SPD) at the beginning of the budget debate. It would be like investing in the fire service "and ultimately skimping on water."

At the same time, she once again advocated for "measures against working time fraud." She received applause from the CDU/CSU and the AfD. Representatives of both parties stated that Bas has their "full support" in taking action "against this abuse." So-called work refusal demonstrably affects a tiny fraction of people receiving citizen's allowance.

"Only with targeted investments in social infrastructure, climate protection, and fair public services can growing inequalities be effectively overcome and trust in the welfare state and our democracy strengthened."

Joachim Rock, Joint Welfare Association

Alliance 90/The Greens and The Left Party therefore repeatedly referred to a new study by the Sanctions-Free Association and the Verian polling institute, according to which half of those surveyed stated that not everyone in their household could feed themselves with the citizen's income. Parents, in particular, are foregoing food for their children. "No one needs to curry favor with the CDU/CSU by citing mafia-like structures," said Eckert of the Greens, referring to the debate on alleged welfare fraud sparked by Bas.

Instead of a "hate campaign against recipients of the citizen's allowance," what is needed is a "sanction-free minimum income that is sufficient to live on," demanded Mazzi of The Left Party. Administrative gaps must also be closed. Social associations such as the Association of German Workers' Associations (VdK) also called for full funding of job centers before the Bundestag debate.

According to the Association of German Workers' Associations (VdK), administrative expenditures are underestimated in the budget. The shortfall could be even greater in the future. Job centers are also affected by price increases, for example, due to higher wage agreements or increased heating and energy costs. Reallocations of funds for support measures to the administrative budget have so far led to the reduction of programs such as the social labor market. "This development jeopardizes the long-term integration of people into the labor market and increases dependence on state support," the Association of German Workers' Associations (VdK) criticized in a press release.

Empty commitment to inclusion

As a third point, all parties emphasized the importance of inclusive measures such as strengthening the Federal Participation Act. However, the federal government effectively cut the budget for this from €234.03 million to €135.45 million. An additional €389.62 million is to be allocated to promote the inclusion of people with disabilities (2024: €523.7 million).

Before the budget discussion, a broad alliance of welfare organizations, trade unions, and environmental and social organizations called for investments in "social security, ecological progress, and social cohesion." Specifically, the alliance also called for adequate integration into work to promote sustainable employment policies.

"Only with targeted investments in social infrastructure, climate protection and fair public services can growing inequalities be effectively overcome and trust in the welfare state and our democracy strengthened," said Joachim Rock, Chief Executive of the Paritätischer Wohlfahrtsverband (Parity Welfare Association) in a press release.