The German Association of Cities and Municipalities (Deutscher Städtetag) has indicated a willingness to consider transferring municipal responsibilities in the social welfare sector to the Federal Employment Agency (Bundesagentur für Arbeit) as part of potential social state reforms. This openness comes in response to a proposal outlined by the Federal Employment Agency.
Christian Schuchardt, Managing Director of the municipal umbrella organization, told the Frankfurter Allgemeine Zeitung that cities are open to relinquishing tasks where they have limited decision-making power, particularly when funding is insufficient. He specifically mentioned housing benefit (Wohngeld) as a possible area for transfer.
The Federal Employment Agency, led by Andrea Nahles, has proposed consolidating existing housing benefit administration with the child benefit supplement (Kinderzuschlag), both forms of income support for working-income families who currently must apply through separate channels.
However, the Städtetag’s willingness to pursue this reform is contingent on assurances that the federal government or the Federal Employment Agency doesn’t selectively assume responsibility. Schuchardt stressed that if a task is transferred, it must be taken on comprehensively. In the case of housing benefit, this would require the Federal Employment Agency to assume responsibility for all recipients, not just those who are employed.
Currently, approximately 1.2 million households receive housing benefit, a contribution towards living costs, administered by municipal housing benefit offices. The child benefit supplement, which was paid to 1.4 million children as of August, is managed by the Federal Employment Agency’s family cash offices.
