Germany Plans Welfare Fraud Crackdown and Benefit Restrictions

Newsworm
Newsworm
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June 20, 2026
Germany's state interior ministers are pushing to crack down on welfare fraud using artificial intelligence and improved data sharing. The proposals also include making it harder for EU citizens to claim Bürgergeld after only a few months of work in Germany, and reviewing child benefit payments for EU nationals whose children live in their home countries.
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Germany Plans Welfare Fraud Crackdown and Benefit Restrictions
The government spent 5.9 percent more on social benefits last year than in 2024. According to the Federal Statistical Office, approximately €751.2 billion was spent in 2025 on benefits such as housing allowance, unemployment benefits, and long-term care allowance. - AFP

Germany's state interior ministers are pushing for a significant tightening of measures against welfare fraud, including proposed cuts to social benefits for EU nationals living in the country. The plans are outlined in draft resolutions ahead of the Interior Ministers' Conference (IMK), which is taking place in Hamburg from Wednesday to Friday, as reported by Bild newspaper.

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Technology to Target Fraud Automatically

Among the measures under consideration is an expanded digital data-sharing system, alongside the deployment of artificial intelligence to automatically identify fraudulent patterns and enable faster identification of those committing welfare fraud.

Restricting Bürgergeld Access

The interior ministers also want to examine whether it is possible to make it harder for EU citizens to claim Bürgergeld, Germany's basic income support. The concern centres on people, particularly from southeastern Europe, who work in Germany for only a few months before becoming entitled to the benefit. The ministers are seeking ways to prevent this from happening.

Child Benefit under Review

A further area under review is the level of child benefit paid to EU nationals in Germany whose children remain in their home countries. Currently, these parents receive the same amount as those whose children live in Germany. The ministers want to examine whether those payments should be reduced.

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Protecting Public Trust in the Welfare State

The draft resolution cited by Bild states that welfare fraud and misuse "endanger public acceptance of social benefits, undermine the integrity and functionality of state support mechanisms, and represent a significant burden on social systems and the national budget across Germany." The stated aim of the proposed measures is to make the welfare state "less susceptible to fraud."

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