Burgergeld, a social benefit system in Germany, supports millions, including the unemployed and the working poor. Despite its purpose, a study reveals significant inefficiencies, with administrative costs rising 39% over ten years, consuming up to 70% of budgets at Jobcenters. The Bertelsmann Foundation's research calls for urgent reforms, emphasizing the need to tailor assistance to diverse recipient needs rather than applying a one-size-fits-all approach. Currently, many challenges remain unaddressed due to a lack of legal frameworks, hindering effective employment reintegration efforts for millions of recipients, including a substantial child demographic.
"In the past ten years, administrative costs have risen by 39%, reaching 6.5 billion euros. Some Jobcenters spend as much as 70% of their budget on bureaucracy."
"The heterogeneity of benefit recipients must be taken into account so that funds are not only allocated on a flat-rate basis," he said, highlighting that issues like disability, childcare, and a lack of education create a complex web of needs that are not properly being addressed.
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