Basic Security and Care Assistance: Social Welfare Spending Increased by 18 Percent

In Germany, social welfare spending increased by 18 percent in 2023, reaching net expenditures of 17.6 billion euros. The largest portion of social welfare spending, accounting for 57.2 percent, was allocated to basic security in old age and in cases of reduced earning capacity, amounting to 10.1 billion euros, a 14.5 percent increase from the previous year.

Additionally, nearly 1.5 billion euros were spent on assistance for subsistence when individuals are unable to cover their necessary living expenses on their own or with the help of their children, reflecting a 16.4 percent increase.

The combined expenditure for health assistance, help in overcoming specific social difficulties, and assistance in other life situations was approximately 1.6 billion euros, a 17.9 percent increase compared to the previous year. The rise in social welfare spending partly resulted from the decrease in expenses for care assistance in 2022 due to a care reform, which led to lower overall social welfare expenditures.

However, in 2023, care expenses increased by more than 27 percent, reaching nearly 4.5 billion euros. Furthermore, a total of 25.4 billion euros was allocated to integration assistance, covering support for housing, leisure activities, and therapeutic services, representing a 9.4 percent rise from the previous year.