Germany sets up commission to streamline Social Welfare Administration

Federal Labor Minister Bärbel Bas (SPD) has appointed a commission to present proposals for an efficient and citizen-friendly social welfare administration by the end of the year. The committee, comprised of representatives from the federal, state, and local governments, will begin examining reform ideas "for a modern welfare state" starting in September, the ministry announced in Berlin on Thursday. The focus will be on tax-financed benefits such as citizen's benefit, housing benefit, and child allowance.

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It is necessary to "make the welfare state and local social services more citizen-friendly, effective, and efficient," explained Minister Bas. However, the level of social protection must be maintained. "Those in need must be able to rely on the welfare state, without any ifs, ands, or buts." State support must be provided "unbureaucratically and quickly."

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The CDU/CSU and SPD agreed to establish the commission in their coalition agreement. The reforms are intended to help ensure the welfare state remains affordable in light of rapidly growing social spending and federal budget constraints. The CDU/CSU, in particular, sees significant savings potential in social spending within the CDU/CSU-SPD coalition.

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Concrete proposals for measures are to be implemented by the relevant departments starting in early 2026. The commission will formulate review mandates for points that require further review and specification, the ministry explained.

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The commission will incorporate external expertise into its work. According to the ministry, expert discussions are planned with the social partners, social and business associations, the Federal Court of Auditors, the Regulatory Control Council, and the "Initiative for a Capable State." The tasks include the consolidation of social benefits, the acceleration of administrative processes, and digitalization.

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Separate commissions are dealing with the specific reforms of individual social systems. A federal-state working group on long-term care has already been established. According to the Federal Ministry of Health, a commission on statutory health insurance will follow "in a timely manner." According to Bas, a pensions commission is expected to begin work next year.

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