German govt plans tighter rules for social welfare benefits

The German government plans to tighten rules for recipients of welfare benefits, including by stiffening penalties for those who don't pursue work, under a plan approved by the Cabinet on Wednesday, reported dpa.

Under the reforms, anyone who refuses a reasonable job, training scheme or other employment measure without a valid reason will in future face an immediate 30% reduction in basic income support for three months.

Anyone who fails to attend appointments at the government job centre without good reason will also receive a 30% reduction in benefits for one month, instead of the previous 10% penalty.

German Employment Minister Hubertus Heil, a Social Democrat (SPD), said that anyone who does not cooperate or cheats by working illegally while still claiming benefits "must expect harsher consequences."

The changes will be sent to parliament and are expected to be passed and come into force at the turn of the year, Heil said.

The Labour Ministry said the plan will deliver "more commitment, more labour market integration and more fairness in the welfare state."

Heil said that job placement and training remain at the core of Germany's long-term jobless benefits in order "to get people into work."

Longer commuting times of up to three hours will also now be considered "reasonable" for job offers, although there are some exceptions for those who also have to care for family members.

The plan also calls for offering businesses subsidies for hiring refugees, as well as for allowing them time off to attend vocational language courses.

That step is largely aimed at Ukrainian refugees, a large number of whom are receiving welfare benefits but lack the basic German language skills generally required for most jobs in the country.

Last year, 65% of Ukrainian refugees in Germany received welfare benefits, according to data from the Federal Employment Agency.