Coalition Government Outlines Social Assistance Reform Priorities
The newly formed Austrian coalition government is prioritizing a comprehensive reform of the social assistance system, aiming for a “mammoth project” with lasting impact.Discussions within the council this week will pave the way for a first federal-state meeting next week, according to reports.
The government program focuses on three key areas: nationwide standardization of social assistance, an integration phase for asylum recipients, and improved connection between social assistance and the labor market.
Uniform Social Assistance Nationwide: A primary goal is to re-establish a uniform system of social assistance across all Austrian states. The previous attempt at reform under the prior government was largely overturned by the Constitutional Court, leading to a fragmented system where each state operates independently. Re-harmonizing these systems will be a major focus of upcoming negotiations. This will likely involve adjustments to payments, especially for larger families, with the intention of factoring in existing family allowances when determining social assistance eligibility.
Integration Phase for Asylum Recipients: The coalition plans to introduce a mandatory integration program coupled with an “integration allowance” for individuals entitled to asylum. During this integration phase, access to certain services may be reduced compared to full benefits. The government clarifies that EU rights must be equated with those of asylum-entitled citizens. Integration Minister Plakolm has stated this phase will not apply to Austrian citizens, clarifying previous statements from the Ministry of Social Affairs. The program will emphasize German language acquisition and the adoption of Austrian values, with consequences – such as benefit reductions – for non-compliance. Participation in German and integration courses will be compulsory.
Strengthened Labor Market Connection: The government aims to improve the connection between social assistance recipients capable of working and the labor market, facilitating faster and more effective placement through the AMS (Austrian Public Employment Service).
Basic Child Protection Measures: Minister of social Affairs Schumann intends to incorporate the SPÖ’s proposed basic child security into the system, with a strong emphasis on benefits in kind, such as after-school and holiday care. These measures are also designed to support parental integration into the workforce and ensure children receive healthy meals, a key priority for SPÖ leader Andreas Babler.
Despite demonstrating content agreement on the overall redesign, differing perspectives were apparent during discussions. Minister Schumann advocated for a cautious approach, acknowledging that age, illness, and disability may prevent many recipients from entering the workforce.Conversely, Minister Plakolm presented a more critical view, referring to “billion-dollar expenses” and suggesting some recipients view social assistance as a “convenient income,” even when presented with data showing total social welfare expenditure below one billion euros.
