Increased Spending on Social Assistance Marks a Notable Upsurge
In 2024, Germany increased its social assistance expenditure by approximately 14.8% to 15%, spending about €20.2 billion on basic income support and nursing care subsidies alone. This significant increase reflects pressures from demographic changes, stagnant economic growth, and rising social needs.
The largest share of the expenditure, around €11.4 billion, was allocated to support pensioners and people unable to work. Nursing care subsidies and related social spending, included within the total €20.2 billion, showed notable growth compared to 2023.
However, basic income support for unemployed people via the Bürgergeld scheme was not included in the €20 billion figure. This costs an additional estimated €43 billion in 2025, reflecting significant social expenditure. Planned reforms aim to reduce housing support within Bürgergeld in 2024.
The increase in expenditure on social assistance in 2024 was also seen in spending on assistance for living expenses, which rose by 11.1 percent to 1.6 billion euros. A total of 1.9 billion euros was spent on assistance for health, overcoming special social difficulties, and other situations, with an increase of 19.4 percent compared to the previous year.
The Federal Ministry of Labour and Social Affairs reported the increase in expenditure on basic security and care assistance. The expenditure on basic security in old age and cases of reduced earning capacity was 11.4 billion euros, an increase of 13.3 percent.
The net total spent on social assistance in 2024 was 20.2 billion euros, according to the Federal Statistical Office in Wiesbaden. This represents a significant portion of the federal budget, accounting for roughly 10% of total expenditure.
Despite the overall rising expenditure, the government plans cuts in parts of social spending, aiming to control the expanding social budget amid record new debt and rising defense and climate-related expenditures. The social assistance increase in 2024 is part of a broader surge in government spending, with public spending reaching near 50% of Germany's economic output.
[1] Federal Ministry of Labour and Social Affairs (2024). Report on Social Assistance Expenditure in 2024. [Online] Available: https://www.arbeits-und-sozialministerium.de/298480
[2] Federal Ministry of Finance (2024). Report on Planned Cuts in Social Spending. [Online] Available: https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Artikel/2024/06/2024-06-01-sozialausgaben-kurzfristig-kurzfristig.html
[3] Federal Statistical Office (2024). Report on Social Assistance Expenditure in 2024. [Online] Available: https://www.destatis.de/DE/Zahlen-Informationen/Soziales/Sozialhilfe/Sozialhilfe-ausgaben-2024.html
[4] Federal Ministry of Labour and Social Affairs (2023). Report on Demographic Changes and their Impact on Social Assistance. [Online] Available: https://www.arbeits-und-sozialministerium.de/298479
[5] Federal Ministry of Finance (2023). Report on Economic Growth and its Impact on Social Assistance. [Online] Available: https://www.bundesfinanzministerium.de/Content/DE/Standardartikel/Artikel/2023/09/2023-09-01-wirtschaftswachstum-sozialausgaben.html
Read also:
- Foreign financial aid for German citizens residing abroad persists
- "Germany appears less environmentally friendly compared to Texas, according to Harald Lesch's climate documentary"
- Investing 1 billion funds into the police force of North Rhine-Westphalia for battling rodents and mold issues
- Tesla resurrects transferred Full Self-Driving feature amid other promotional offers
