The Federal Government must make an exceptional expenditure this year to cover unforeseen additional costs associated with the basic social security system (Grundsicherung). According to the “Tagesspiegel” (Friday edition), citing a letter from the Ministry of Finance, the working and social affairs ministry has requested an extra 250 million euros. This letter informs the budgetary committee about the supplementary costs.
The annual budget for 2026 allocated approximately 28 billion euros for the standard monthly rates paid to recipients of basic social security. An additional 13 billion euros was intended for the federal government’s share of housing and heating costs for these recipients, with the remainder covered by local municipalities. Furthermore, nearly 5 billion euros were budgeted for administrative costs, and another close to 5 billion euros for job integration programs.
However, the costs for the first two items are different from projections. While more must be spent on the standard rates than anticipated, less is allocated for housing and heating. Ultimately, this still leaves the federal government with an increased burden of 250 million euros.
In the statement by parliamentary state secretary Dennis Rohde (SPD), the reasons for the additional costs were detailed. He noted that the size of supplementary contributions from statutory health insurance funds could not have been foreseen, and the actual additional payment required by the federal government has turned out to be significantly higher than in previous years. Furthermore, the state secretary pointed to “expenditure-increasing frameworks” regarding the federal share of costs for housing and heating. Due to the basic social security being a statutory right for those affected, the federal government has no alternative but to fund these payments.
The reform, which converted the Bürgergeld into the basic social security system, came into effect in the summer. The Union had originally promised billions in savings. However, the Ministry of Labor recently indicated that since the summer, monthly savings of around 100 million euros compared to the previous year have been observed.
This account sharply differs from the criticism raised by Timon Dzienus, chairman of the Green parliamentary group in the Committee for Labor and Social Affairs. Dzienus asserted that the announced savings through the Bürgergeld reform “were a blatant lie from day one.” He argued that the new basic social security system is not resulting in savings, but rather incurring 250 million euros in additional costs in the first year. Dzienus criticized what he termed “Merz’s obsession with sanctions,” claiming it saves no money and puts people in jeopardy for their future. “The Union should be ashamed of its miserable campaign,” he stated. Dzienus dismissed sanctions as “work market political nonsense.” He argued that true savings would come from equipping people with new qualifications for good jobs. He emphasized that the welfare state is not a luxury but “the insurance policy for the destiny of all people who would work,” adding, “Instead of further sanctions, what is needed are more chances for a self-determined life, and support and further training instead of fear.”
It should be noted that in previous years, there have already been substantial exceptional expenditures for basic social security-or Bürgergeld at the time. For instance, in 2024, 3.2 billion euros had to be topped up.
