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Germany social assistance spending rises to 21.5 billion euros
Social assistance spending in Germany rose by 6.1 percent in 2025, reaching a total of 21.5 billion euros, according to data from the Federal Statistical Office (Destatis). While expenditures for basic security in old age and for those with reduced earning capacity accounted for 54.9 percent of the total at 11.8 billion euros, their relative share of total social assistance has declined for three consecutive years.
A significant driver of the overall increase was long-term care assistance, which saw a 13.3 percent rise to 6 billion euros. This sector now represents 27.8 percent of total social assistance spending.
Rising costs for nursing home care are placing heavy burdens on municipal budgets. Burkhard Jung, President of the German Association of Cities, has called for a fundamental reform of long-term care insurance to provide full coverage. Jung argues that a full insurance model and an income-dependent cap on personal contributions would prevent individuals from falling into social assistance due to care costs and would relieve municipalities of billions in annual expenses.
Entities
Aon · BMW · Beitragsservice · Burkhard Jung · CDU · CDU/CSU · Deutscher Städtetag · FDP · Federal Ministry of Finance · Federal Ministry of Labour and Social Affairs · Federal Statistical Office · Friedrich Merz
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] The employee lump-sum allowance will increase from 1,230 euros to 1,430 euros.
- [● 5 SOURCES] The German government has agreed on an income tax reform scheduled to take effect on January 1, 2027. www.faz.net · www.oldenburger-onlinezeitung.de
- [● 2 SOURCES] A family of four with a taxable annual income of 60,000 euros could have over 600 euros more available annually starting in 2028.
- [● 2 SOURCES] Child benefit is planned to increase to 272 euros.
- [● 2 SOURCES] The basic tax-free allowance is set to increase to 12,900 euros by 2028.
- [● 4 SOURCES] The reform is planned to provide an annual tax relief of up to ten billion euros. www.faz.net · www.focus.de
- [○ 1 SOURCE] The net tax relief in 2028 is expected to be approximately seven billion euros. www.faz.net
- [○ 1 SOURCE] The total tax revenue reduction for 2027 is expected to rise to 1.55 billion euros due to the removal of certain subsidy cuts. www.oldenburger-onlinezeitung.de
- [● 3 SOURCES] The Ministry of Finance decided not to proceed with the abolition of the tax-free allowance for employee discounts. www.oldenburger-onlinezeitung.de · www.faz.net
- [● 2 SOURCES] Removing the employee discount allowance would have resulted in tax revenue losses of 240 million euros. www.oldenburger-onlinezeitung.de
- [● 8 SOURCES] The flat-rate tax for marginal employment will increase from 2 to 5 percent starting in 2027. www.merkur.de
- [● 8 SOURCES] The health insurance flat-rate contribution for commercial minijobs will increase from 13 to 17.5 percent in 2027. www.merkur.de