A former head of the Federal Employment Agency, Detlef Scheele, is calling for legislative changes to the Bürgergeld (citizens’ allowance) system to curb social welfare fraud allegedly perpetrated by criminal organizations. Speaking to the Süddeutsche Zeitung, Scheele highlighted a concerning trend: individuals, often EU citizens from countries like Romania and Bulgaria, are being registered at substandard properties, seemingly employed in low-wage “minijobs” and then claiming supplementary benefits.
Scheele described the practice as having evolved into a “growing business model” where organizers exploit loopholes within the system. It’s alleged that these individuals often submit fraudulent employment certificates to obtain Bürgergeld benefits, with organizers profiting by collecting fees, often acting as landlords of dilapidated housing and submitting inflated rental costs for reimbursement by job centers.
The call for reform focuses particularly on Paragraph 7 of the Social Code II, which outlines criteria for receiving Bürgergeld. Current regulations lack specific conditions regarding the extent of work required for EU citizens exercising their right to free movement to qualify for supplementary benefits, facilitating the exploitation through minijob employment.
The issue has gained local prominence in cities like Duisburg and Hagen, where reports of individuals from Romania and Bulgaria accepting minijobs and registering at poor-quality housing to claim benefits have surfaced. The fraudulent activity is often amplified when the employer is also the landlord, leading to inflated rental claims processed via the job center.
Calls echo beyond Scheele, with CDU General Secretary Carsten Linnemann advocating for changes at the EU level to prevent minijobs alone from qualifying individuals for Bürgergeld and housing assistance. Duisburg’s SPD Mayor Sören Link, currently campaigning in a local election, has also publicly expressed concern, emphasizing an influx of migration from Southeastern Europe leading to organized welfare abuse. He underscored the need for consistent enforcement by the state to maintain social cohesion.
Frank Böttcher, head of the Duisburg job center, confirmed that a single minijob can be sufficient for a EU national to be entitled to supplementary Bürgergeld. Moreover, the system offers benefits for families associated with these jobs. The job center in Duisburg currently provides Bürgergeld to approximately 11,000 Romanians and Bulgarians. Böttcher cited instances of companies employing primarily individuals from Romania and Bulgaria on minijobs, with each employee subsequently applying for Bürgergeld.
Böttcher supports calls to adjust the system, emphasizing that an EU citizen should only be eligible for benefits after undertaking work significantly exceeding the scope of a minijob.
