Background information

Germany's pandemic response, including lock-downs, social distancing measures, occupational bans and business confinements, has disproportionally affected low-wage workers and self-employed workers (Hövermann 2020). With over 10 million employees working under Germany's short-time work scheme (Kurzarbeit) already back in May 2020, income top-ups such as child benefits, housing benefits or unemployment benefits have increased in importance (Focus online 2020). An increasing number of workers are in need of social benefits to replace or top up their income from work with social benefits.

Content of measure

To prevent financial hardship, the Government has eased access to Germany's basic income scheme (Grundsicherung). Applicants to not need to declare their savings, unless these are substantial. Cost of housing and gas are taken into account in their actual amount, instead of applying general rates. Easier access to te basic income scheme was granted until the end of 2020 initially and has now been extended until the end of March 2021.

The Federal Ministry for Family Affairs, Senior Citizens, Women and Youth (BMFSFJ) and the Federal Ministry of Labour and Social Affairs both provide information on their websites for workers wishing to apply for benefits.

Use of measure

Germany's benefits bureaucracy has expanded in the course of the economic and social crisis that is accompanying the pandemic. The basic income grant is one of over one hundred different grants or tax deductions provided for families in Germany. The broad variety of measures means that families face the risk of benefit repayment. Successful applications for some measures disable eligibility for others (see Focus online, 2020). The measures decrease financial hardship for low-income households, but potentially also increase the risk of household debt.

Target groups

Workers	Businesses	Citizens
Unemployed Other groups of workers	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

Social partners are usually consulted by the Federal Government when drafting national laws or other major regulations concerning the labour market. No formal tripartite social dialogue structure exists to design pandemic control measures. Germany's pandemic response is based on government by decrees, without parliamentary participation. Public statements by both social partners have informally influenced the policy design of BMFSFJ measures.

Views and reactions

Public statements by social partners have informally influenced the design of BMFSFJ policy measure related to the government's pandemic response.

Sources

• 25 May 2020: Case 1695 Source Focus online (www.focus.de)
• 16 June 2020: Hövermann 2020
• 16 December 2020: BMFSFJ cases original source (www.bmfsfj.de)