Skyrocketing Social Welfare Expenditures in Germany - Sharp rise observed in social welfare spending in Germany
Social Welfare Spending in Germany Increases Significantly in 2024
According to the Federal Statistical Office, social welfare spending in Germany experienced a substantial increase in 2024 across all categories.
The spending on basic income support for the elderly and individuals with reduced earning capacity saw a rise of 13.3%, amounting to 11.4 billion euros, accounting for 56.5% of total social assistance expenditures.
In the area of care assistance (long-term care assistance), expenditures increased by 17.7%, reaching 5.3 billion euros.
The spending on support for subsistence needs (living expenses) grew by 11.1%, amounting to 1.6 billion euros.
Health-related assistance, special social difficulties, and other life circumstances collectively increased by 19.4%, to 1.9 billion euros.
Under the Ninth Book of the Social Code, spending on inclusion assistance for people with disabilities rose by 12.9%, totaling 28.7 billion euros.
Disability assistance (integration assistance under the Federal Participation Act, recorded in SGB IX) also saw an increase of 12.9%.
Overall, net social assistance expenditures under the Social Code Book XII rose by approximately 14.8%, reaching 20.2 billion euros in 2024[1][2].
This broad increase reflects rising demands and costs in social welfare sectors, with significant shares devoted especially to old age, care, and disability support.
The data does not include performances under the Second Book of the Social Code, which covers basic security for job seekers.
These figures were reported by the Federal Statistical Office in Wiesbaden.
[1] Federal Statistical Office (2025). Social Welfare Expenditure Statistics in Germany, 2024. [Online]. Available: https://www.destatis.de/DE/Themen/Soziale-Lage-Umwelt/Armut-Soziale-Ungleichheit/Sozialhilfeausgaben/Sozialhilfeausgaben-2024.html
[2] Federal Statistical Office (2025). Social Welfare Expenditure Statistics in Germany, 2023. [Online]. Available: https://www.destatis.de/DE/Themen/Soziale-Lage-Umwelt/Armut-Soziale-Ungleichheit/Sozialhilfeausgaben/Sozialhilfeausgaben-2023.html
The increase in social welfare spending in Germany in 2024, as stated by the Federal Statistical Office, seems to have heavily influenced various policy areas, such as the employment policy. This could be due to the rise in expenditures for basic income support for the elderly and individuals with reduced earning capacity, which may have affected employment opportunities for younger generations. Additionally, the considerable growth in care assistance (long-term care assistance) expenditure might impact businesses offering care-related services, thereby affecting the finance sector if these businesses require loans or investments.
