The welfare cuts announced by the German government will affect approximately 8 million people in Germany, according to a document prepared by Ulrich Schneider, a member of the Left Party's board.
In it, he outlines a number of planned reforms by the ruling coalition of the CDU/CSU and the SPD. These include planned cuts to healthcare payments, housing subsidies, childcare benefits, emergency child support payments, maintenance advances and a delay in the indexation of student grants. “Austerity policies hit the poorest sections of society particularly hard”, the document notes.
Regarding housing benefits, the German government has approved a bill that aims to save at least €1.5 billion in 2027 and €2 billion per year from 2028. The range of beneficiaries will be narrowed and the amounts themselves will be reduced. Schneider estimates that this will affect several hundred thousand people. According to the Health Ministry's draft, the eligibility criteria for care benefits will be tightened.
According to the plans of Family Minister Karin Prien, the minimum and maximum amounts of childcare benefits will be slightly increased. However, the payment period will be reduced from 14 to 12 months. According to official statistics, 1.6 million people received this benefit in 2025.
Regarding the planned abolition of emergency child benefits, Schneider estimates that “this will affect 1.5 million children in 600,000 households“. In addition, according to the plans of the Ministry of Family, the state will only pay advance payments to those who do not pay maintenance for children and adolescents under 16 (the current age limit is 18). According to the Left Party, this will affect approximately 111,000 adolescents. Meanwhile, young people receiving state scholarships (Bafög) will receive increased housing benefits six months later than planned - not in the upcoming winter semester, but only in the next summer semester. Schneider said this would affect more than 600,000 students and pupils.
The German government, led by Chancellor Friedrich Merz, is pursuing a policy of fiscal austerity, revising social security contributions to reduce the deficit. The cabinet's review of social security contributions has drawn sharp criticism from the opposition, which has accused the government of "social dismantling."