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Social assistance: Expenditures increase significantly


Demographic change is making itself felt in social assistance: In particular, the protection of poor older people caused expenditure to rise by 6.5 percent last year.

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Person in need of care with caregiver: Ten percent more expenditure on care assistance

Photo: Westend61 / Westend61 / Getty Images

In the past year, spending on social assistance has risen faster than the general cost of living.

In total, the social welfare agencies spent 15.3 billion euros net in 2021, as reported by the Federal Statistical Office.

That is 6.5 percent more than in the previous year.

Inflation in 2021 was just 3.1 percent.

The highest additional amount related to basic security in old age and reduced earning capacity.

Expenditure here increased by 7.6 percent from 7.56 billion euros to 8.13 billion euros.

This means that more than half of the net expenditure on social assistance is accounted for by this item, which is indirectly paid in full by the federal government.

As in the previous year, the highest relative increase was accounted for by care assistance, where expenditure was ten percent higher at EUR 4.74 billion.

It is granted if those in need of care cannot pay their own contributions.

The term social assistance summarizes those services that are regulated in the twelfth book of the Social Security Code.

In addition to basic security in old age and reduced earning capacity as well as assistance with care, this also includes assistance with living expenses, the expenditure of which was at the same level as the previous year at 1.2 billion euros.

However, the basic security for job seekers, generally known as Hartz IV, is not included.

Social assistance also includes assistance for health and for overcoming particular social difficulties and assistance in other situations, for which together with almost 1.3 billion euros, 4.2 percent less funds were needed than in 2020.


Source: spiegel

All business articles on 2022-08-19

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