Two local government officials in the German state of Thuringia are advocating for a shift in how social welfare benefits are distributed to adult asylum seekers, recognized refugees and non-EU foreign nationals. Landrats (district administrators) Matthias Jendricke and Marko Wolfram are proposing that these benefits be provided as interest-free loans rather than outright grants.
In a joint statement, Jendricke argued for a renewed focus on systemic reform, asserting the current system is increasingly ineffective. The proposal suggests a system mirroring student loan programs like BAföG; individuals who secure employment subject to social security contributions would repay only a portion of the received benefits. Incentives like repayment discounts for faster returns would also be included.
Wolfram emphasized the aim is to encourage quicker labor market participation amongst newcomers, creating a positive incentive for integration. He also suggested the plan could address public concerns regarding fairness in benefit distribution. Jendricke added that the proposal is intended to apply pressure to the system to encourage swift integration.
The officials have outlined potential pathways for loan forgiveness, suggesting that half of the loan could be waived if recipients secure employment within a year and successfully complete a language proficiency test. They also proposed rewarding the educational achievements of children – such as completing school – with repayment bonuses for their parents.
