Germany's VdK Endorses Social‑State Reform Plan, Urges Digitalisation but Warns of Benefit Cuts
Politics

Germany’s VdK Endorses Social‑State Reform Plan, Urges Digitalisation but Warns of Benefit Cuts

The VdK Social Association welcomes the commission’s proposals for a state‑wide social reform, calling the draft “important and correct” approaches.
President Verena Bentele told the “Rheinische Post” that people should, through increased digitisation and on‑site assistance, obtain easier access to the benefits they are entitled to-a relief that is long overdue. “The social‑state jungle must be lit up” she said.

Bentele warned that the implementation must not come at the expense of entitlement holders. She expressed concerns that combining benefits without raising expenditures could trigger cuts in housing‑related costs. Such reductions would disproportionately burden low‑income earners and are therefore unacceptable.

She added that a strong social state also requires robust, fairly financed social insurance schemes.

Ifo economist Andreas Peichl praised the report to the “Handelsblatt”, describing it as “braver than expected” even though many details of implementation remain unsettled. He added that while some adjustments may be “a bit more” in places, he is overall optimistic. Peichl urged the federal government to turn the report into a sensible draft law, noting that the reform’s success hinges on many detailed levers that will determine whether it truly delivers substantial change.

The commission has incorporated all the core demands of experts: consolidation of social benefits, digitisation of administrative processes, enhanced work incentives, as well as legal simplification and standardised benefit packages.