Burgergeld, a social support benefit in Germany, currently assists approximately 5.4 million individuals. Despite its goal of supporting vulnerable populations, high administrative costs account for up to 70% of the budget. A recent Bertelsmann Foundation study highlights that too little funding is directed towards effective job placement and personalized support programs. Tobias Ortmann emphasizes the need for reforms that acknowledge the diverse needs of beneficiaries, advocating for a more tailored approach rather than a uniform system, and calls for a legal framework to enable meaningful change in Jobcenters.
Nearly 5.4 million people in Germany receive Burgergeld social benefit payments that cover a wide range of needs, from the unemployed to the working poor to adults with disabilities.
the study found that two-thirds of the budget may be spent on admin, while too little is invested in getting the unemployed into work.
"The heterogeneity of benefit recipients must be taken into account so that funds are not only allocated on a flat-rate basis," he said.
Ortmann pointed out that until there is a legal framework that recognizes this problem, there is little individual Jobcenters on the ground can do to address it.
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