Germany budget cuts: Social spending reductions to disproportionately affect women

Proposed cuts to the 2027 German federal budget are expected to impact women disproportionately, according to a study by the German Women's Council and Dezernat Zukunft. Of the total 8.4 billion euro reduction in social spending, approximately 5 billion euros are projected to affect women.

The cuts target several key areas, including housing allowance (Wohngeld), childcare (Kitas), child supplements, maintenance advances, and health and long-term care insurance. The German Tenants' Association has already expressed opposition to housing allowance reductions, noting that approximately 400,000 households could lose their subsidies due to planned changes in income calculation and heating cost components.

Researchers attribute this gendered impact to the unequal distribution of unpaid care work. Women in Germany perform nine more hours of childcare, nursing, and household duties per week than men on average, often leading to part-time employment and lower lifetime earnings. The study suggests that investing in childcare infrastructure and reforming marriage tax splitting could increase female employment by 209,000 full-time equivalents and eventually relieve the public budget by 4.5 billion euros by 2031.