Social Assistance Reform: No Integration Phase for Austrians After All

On Wednesday, there were different signals from the ÖVP-SPÖ-NEOS coalition regarding the planned reform of social assistance. The SPÖ-led Ministry of Social Affairs announced that the planned "integration phase" would apply to all applicants, including Austrian citizens. However, ÖVP and NEOS rejected this. Chancellor's Office Minister Claudia Plakolm (ÖVP) stated after the cabinet meeting that the negotiations on "Social Assistance NEW" were in the "final stages."

Confusion About Integration Phase Also for Austrians

The Ministry of Social Affairs initially told APA that the proposed "integration phase" should apply not only to immigrants but to all applicants. This is necessary for reasons of equal treatment. These statements may have caused irritation among ÖVP and NEOS, as reported in negotiating circles. In any case, no agreement or timetable could be presented at the cabinet meeting on Wednesday. In the press foyer after the government meeting, SPÖ club chairman Philip Kucher explained that it was a mammoth project involving several ministries and states.

Minister Plakolm, who is also responsible for integration, clarified that contrary to the information from the Ministry of Social Affairs, the planned integration phase would not apply to Austrians. She emphasized that, for example, asylum seekers would not receive social assistance in the first three years, but rather an integration allowance. Its amount would also depend on the willingness to participate in the prescribed language, values, and orientation courses, she reiterated the already communicated plans.

A clear denial also came from the third coalition partner: statements that such a phase should also apply to Austrians have nothing to do with reality, assured NEOS club chairman Yannick Shetty. At the same time, he said that if there were disputes, they would be behind closed doors. Representatives of the other two coalition partners also did not want to dramatize the situation.

Plans for Integration Phase Already Roughly Anchored in Government Program

The government's plans for "Social Assistance NEW" were already roughly outlined in the government program, without becoming too specific. The introduction of an "integration phase" recorded there is nevertheless aimed at immigrants - primarily asylum seekers and those with subsidiary protection - and is intended to promote integration. Meanwhile, the "Standard" reported in the afternoon of a "finished draft" for "Social Assistance NEW" that it had obtained. There was no confirmation of this from the government cabinets upon APA request.

According to the Standard, the draft includes the plan for nationwide standardization already foreseen in the government program, as well as the already announced planned support for employable recipients through the Public Employment Service (AMS). Sanctions are also to be standardized if those affected do not sufficiently contribute to their labor market integration. Non-employable people, however, are to continue to be supported by the states as already announced. The states are also to be responsible for the "financial aspects" of "Social Assistance NEW."

Regarding the planned introduction of a mandatory integration program in connection with an "integration allowance," the draft states, according to the Standard, that "integration obligations should strengthen the self-responsibility of those affected." "Along constitutional and European legal possibilities," a "up to three-year integration phase" will be introduced. During this time, "in any case, fewer benefits compared to the full amount will be available."

German Acquisition Central to Integration Phase

In conjunction with the mandatory integration program "from day one," the acquisition of German and the "conveyance of values" would be consistently demanded, the Standard further quotes from the draft. There are no specifics on consequences: "If the obligations are not met, timely benefit reductions create binding force," the report merely states. Measures are also planned to combat child poverty and improve the "equity of opportunity" for all children and young people - a point that the SPÖ has always demanded (keyword "child basic security").

According to the "Standard," the draft speaks of the "introduction of a 2-pillar future security." Child poverty is to be halved by 2030. The "first pillar" is to be the expansion of benefits in kind and "child-friendly social infrastructure." The "second pillar" involves the further development and optimization of existing "transfer payments," such as the "adjustment of the age bracket of family allowance" and the increase of the "take-up rate of family and social benefits." Cash and in-kind benefits are now to be collected by the federal government, states, and municipalities and checked for overlaps and target accuracy.

Regarding the timeline, it is stated that ongoing discussions would be "immediately continued." In October, there is to be an inaugural meeting with state representatives and the social spokespersons of the governing parties. The goal is for the reform to come into force on January 1, 2027.

Criticism of Integration Phase

Criticism came from the opposition. FPÖ General Secretary Michael Schnedlitz saw the coalition as "completely dysfunctional" because it could not agree. Green social spokesperson Markus Koza sounded similar. The non-decision once again shows that this government is indeed a world champion in announcing, but a laggard in implementation.

The Caritas spoke out in a release against a "back-and-forth on the backs of the poorest." "Our appeal is: Instead of quick fixes and partial reforms, we need a nationwide regulation that ends the patchwork of social assistance and secures the last social safety net in Austria," said Caritas President Nora Tödtling-Musenbichler.

In response to Plakolm's statements that the planned integration phase would not apply to Austrians, Tödtling-Musenbichler countered with a legal opinion commissioned by Caritas. This makes it clear that legally equal persons in social assistance may not be treated unequally. "Accordingly, cuts that, for example, are intended to affect only asylum seekers would not be legally tenable," Tödtling-Musenbichler said.

"The planned integration contribution - according to the government program 250 euros less than social assistance - affects young adults without job opportunities, asylum seekers who cannot work during their procedure, persons entitled to subsidiary protection, and Austrians living abroad. This punishes people for not working in the past, even though they were never allowed or able to work."

VfGH Overturned Child Rate Gradation in 2019

Currently, different regulations apply to children depending on the federal state. The 2019 Social Assistance Basic Law (SH-GG) originally provided for maximum rates for children: The net equalization supplement rate (2025: 1,273.99 euros) served as the basis. For the first child, the maximum rate according to the then law was 25 percent of the equalization supplement, for the second child 15 percent, and for the third and each additional child 5 percent. This regulation was overturned by the Constitutional Court in December 2019, as it was considered a disadvantage for families with multiple children and thus unconstitutional. The child rates are therefore currently set by the states themselves, and there is no longer a federal guideline.

(APA/Red)

This article has been automatically translated, read the original article here.