(new: Union in the 6th paragraph.)
BERLIN (dpa-AFX) – After a wave of criticism, Federal Labor Minister Hubertus Heil (SPD) wants to overturn austerity plans for the future care of hundreds of thousands of young unemployed people. The German Press Agency learned this from government circles on Thursday.
In order to save 900 million euros for the federal budget, unemployed people under the age of 25 should no longer be looked after by job centers but by employment agencies. The costs would then no longer be incurred by the federal government, but by the unemployment insurance. But the plans were not well received by the job centers, the green coalition partner and the Federal Audit Office. They warned that the approximately 700,000 people affected would receive poorer care.
The job centers look after people who receive citizen’s benefit. The employment agency is responsible, for example, if someone who previously paid into unemployment insurance becomes unemployed. The federal job center network had warned of a “radical system change” with far-reaching consequences.
Now those under 25 will continue to be looked after by the job centers. Instead, a different responsibility should be shifted from the job centers to the employment agencies – in this way an equally high amount of savings should be achieved in the federal government’s social budget. The new plan stipulates that in the future the employment agencies will be responsible if citizens’ benefit recipients, regardless of age, are to receive further training. The agencies should also be responsible for vocational rehabilitation. Heil presented the new proposal to the traffic light groups on Thursday, who now wanted to examine it, it was said.
“If it becomes clear that goals cannot be achieved because the resistance is too great, then you have to take countermeasures,” said government circles about the change in plans. Green social politician Frank Bsirske told the dpa: “We very much welcome the fact that the minister was willing to rethink the matter.” In the Greens’ view, outsourcing further training to the employment agency is much more in keeping with their role. “That makes more sense,” said Bsirske’s parliamentary group colleague Beate Müller-Gemmeke. DGB board member Anja Piel said: “Young unemployed people need the best possible advice and support. That’s why it is exactly right that the support of young job seekers now remains with the job centers.” The SPD labor market expert Martin Rosemann called the new proposal “appropriate”.
The opposition Union also rejects the new proposal. “These new plans from Heil also belong on the sidelines,” said their social expert Stephan Stracke (CSU) to the dpa. Pushing further training and rehabilitation into the employment agencies is a “shunting yard at the expense of contributors”. Parliamentary group vice-president Hermann Gröhe (CDU) said: “Divided responsibilities when looking after the unemployed always mean additional effort and uncertainty for those involved.” The whole thing is a sleight of hand.
Heil’s ministry argues that the savings totaling 1.5 billion euros to be made by his company are “a very painful cut.” Of this, 900 million should be saved in the area of citizens’ money, the Social Security Code II. However, benefit cuts would not be considered. In addition, the job centers would also have to be relieved in the event of savings.
In concrete terms, this is now to be done by the job centers referring those affected to the employment agency if they recognize a need for further training. Reintegration back into work will also be organized there in the future. According to government sources, a total of around 45,000 people are currently affected each year. All those entitled to benefits, including younger people, should continue to be looked after by the job centers.
The new plan is to be initiated via an amendment to the Budget Financing Act./bw/DP/men