“New Social Assistance”

More Money for German Language Training as an Integration Bonus

Under the “New Social Assistance” program, the windfall for large refugee families is set to become a thing of the past.(Bild: APA/HELMUT FOHRINGER)

The major political project “New Social Assistance” appears to be entering the home stretch. An initial draft of the bill was leaked to the “Krone.” And it’s already a minor revolution: In addition to the already familiar benefits card (which provides goods instead of cash), there will also be a new type of integration bonus. Only those willing to work will receive the full benefit.

Austria currently does not have a fully uniform social assistance system. The point of contention has always been the varying benefit amounts. Vienna, in particular, is seen as a magnet for recipients of tax-funded benefits. Here, extreme cases involving 9,000 euros are causing a stir.

The various models have led to a proliferation of uncoordinated approaches. Now, the three-party coalition wants to create a common and sustainable framework. The goal is greater fairness and greater precision. SPÖ Social Affairs Minister Korinna Schumann assured the “Krone” that windfalls for large refugee families will be a thing of the past.

Full benefits only for those willing to work and integrate
Difficult political negotiations have been in full swing for months. The goal: greater precision and greater fairness. Now there is a first draft of the bill. The key points of the “New Social Assistance” plan amount to a small revolution: in addition to the “benefits card” that has already been leaked—meaning more vouchers instead of cash—one point is sure to spark debate. 

Those who are able to work should lift themselves out of poverty through work. We are creating a social assistance system that protects people when they need it.

SPÖ-Sozialministerin Korinna Schumann

Bild: APA/HELMUT FOHRINGER

After all, a central tenet of the reform—under the motto “Those who can work should work; those who cannot will be supported”—is a so-called integration allowance, or IBH for short. Under this system, specific integration steps will be more closely linked to benefits.

For example, Supplement 1, which covers “living expenses,” is available only to those who have completed compulsory schooling or can provide proof of German language proficiency and an understanding of Austrian values. And Supplement 2—which is the full social assistance benefit—can only be obtained by those willing to work who have employment subject to full social insurance contributions or, for example, are participating in an AMS training program.

Fixed Minimum Rate for Children in All States
For children, there will no longer be discretion for the states; instead, there will be only a fixed minimum rate, which the SPÖ minister internally refers to as a “future security package.” This is divided into a cash benefit and a benefit in kind. In addition, there will be a so-called “participation card” for children in low-income households that are above the social assistance threshold. It is intended to facilitate access to items such as school supplies, sports equipment, and hygiene products, as well as learning support or vacation activities through clubs. Sixty million euros annually are earmarked for this starting in 2027.

Another key point: The child supplement is to be increased from 700 to 1,000 euros. Whether all of this will go through remains to be seen. The political situation remains tense amid the back-and-forth with the states...