The German government wants to take tougher action against the fraudulent receipt of social benefits. An action plan drawn up by the Federal Ministry of Labour and Social Affairs, which was obtained by the news agency AFP on Wednesday, focuses in particular on social benefit abuse involving migrants from EU countries.
The government wants to make such abuse more difficult through increased data matching, stricter controls and tighter rules. Another planned change is to end the payment of basic income support to people who are wanted under an enforceable arrest warrant.
“With the action plan, we are taking a clear stand against exploitation and benefit fraud,” Federal Labour Minister Bärbel Bas (SPD) said. The minister stressed the importance of foreign workers to the German economy. “What is not acceptable, however, is exploiting freedom of movement in order to exploit people and take advantage of their hardship for organised abuse,” Bas said.
The minister made clear “that I will take action against this with all the means at my disposal — because the abuse of social benefits harms society and weakens trust in the welfare state.”
According to the ministry, data sharing between government authorities is to be improved in order to close loopholes and identify social benefit fraudsters more quickly. Municipalities are also to receive greater powers to take action against so-called derelict properties. Those behind “organised exploitation” are to be held more accountable. Employers who rely on undeclared work are also to face greater liability.
The German government also intends to take action at EU level. “We are also taking our concerns to the European level so that the EU rules on freedom of movement can already be used to prevent abuse,” Bas said. “To stop exploitation at its roots, we are already providing clear information in the countries of origin about standards and fair working conditions.”
One common fraud model involves organised groups bringing people affected by poverty from southeastern European EU countries to Germany. They then accommodate them in so-called derelict properties, provide them with fictitious employment contracts and arrange for social benefits such as child benefit to be paid out.
The Federal Ministry of Labour and Social Affairs said that “more and more municipalities are reporting significant problems with some groups of migrants from EU countries.” According to the ministry, these individuals claim social benefits by invoking EU freedom of movement, but are “employed to only a very limited extent or registered in fictitious employment relationships” and bring “very few qualifications and language skills” with them.
The ministry stressed that the benefit recipients are “frequently themselves victims of criminally organised structures that often resemble human trafficking.” They are accommodated “in run-down propertiesm so-called derelict properties, at sometimes excessively high rents.” Social authorities then frequently have to cover the rent.
“Abuse of social benefits undermines trust in the welfare state and violates the sense of fairness of those who finance it,” the ministry said.In future, municipalities are to receive more tools to take action against derelict properties. The action plan lists orders requiring repairs, pre-emption rights, as well as the possibility of expropriation and prohibiting the use of properties. Jobcenters are also to be informed about “uninhabitable housing units or fictitious addresses” so that rental payments can be stopped.
The Ruhr area is considered one regional focal point for these types of fraudulent activities. It is also the home region of Minister Bas, who represents the Duisburg constituency in the Bundestag. At the beginning of her term in office, Bas had already announced measures to combat social benefit fraud and has regularly held discussions with municipalities affected by the problem.
According to the ministry, the action plan is expected to be approved by the federal cabinet later this month. The rules could then enter into force at the beginning of the new year.
The Left Party accused the government of setting the wrong priorities in connection with the action plan. “For the majority of people in this country, the biggest problem is a welfare state that provides them with too little security,” said Cansin Köktürk, social policy spokeswoman for the Left Party parliamentary group in the Bundestag. “From Social Democratic Labour Minister Bärbel Bas, I expect the same energy to be devoted to an action plan for a strong welfare state that citizens can rely on.”
Watch our video to learn how social benefit fraud is carried out in Germany and how the government plans to tackle it.
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