Expenditures of the Vienna Social Fund Increased Significantly

The expenses of the Vienna Social Fund (FSW) rose to 2.84 billion euros last year. This is an increase of more than 10 percent, as explained at the balance sheet press conference on Wednesday. The care sector, in particular, accounted for additional costs. An additional 6.2 percent of funds were needed for this, as FSW Managing Director Susanne Winkler explained. In light of rising costs, alternative financing models are now being sought.

Thousands Used FSW Offer

According to Winkler, a total of 145,500 people used the FSW's services last year. The number of clients remains at a consistently high level, she emphasized. The number of home visits and applications for funding also increased. As the FSW head highlighted, the fund works with 170 partner organizations, securing a total of 31,000 jobs.

A total of 1.72 billion euros, or around 65 percent of the total budget, was spent on care and support. The sector is financially significant, not least because the intensity of care is increasing, as Winkler explained. For example, an increase in dementia services was recorded. Care places increased by 6.2 percent, and according to FSW, 10.8 percent more funds were needed for the sector overall.

The costs for disability work were estimated at 479 million euros, and those for homeless assistance at 162 million euros. There was a decline in the number of refugees in basic care. Nearly 49,000 clients were registered here - a decrease of around 2.3 percent. 84 percent of those affected live privately. It was once again pointed out that Vienna exceeds the quota compared to the rest of Austria, by more than 200 percent.

City of Vienna Against Classic Privatizations

FSW Managing Director Michael Rosenberg pointed out that 93.6 percent of the funds have directly reached the people being cared for. However, the problem is that the increase in care allowance and pensions has not offset the rise in costs. Therefore, they are now looking for "alternative financing methods," he said.

City Councilor for Health Peter Hacker (SPÖ) confirmed talks regarding budget consolidation: "We are now entering negotiations." For future financing, both external funds and money from partners could be utilized. They will also consider "new organizational forms."

However, the city rejects classic privatizations, as was reaffirmed. They will not relinquish essential responsibility here, promised Hacker. NEOS health spokesperson Jing Hu also emphasized the importance of a strong social network, which the FSW represents.

Warning of Massive Budget Gap

The Greens warned in a response of a massive budget gap. The FSW will not be able to maintain its services with the current funding from the city government, party leader Judith Pühringer and social spokesperson David Ellensohn were convinced. The funds have only been increased by 0.58 percent for 2025 compared to 2024. Due to the inflation rate of 2.9 percent, there is a "significant funding gap" of around 44 million euros, calculated the Greens.

(APA/Red)

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