A single intake and eligibility framework would govern Grundsicherung, Wohngeld, Sozialhilfe, and Kinderzuschlag, administered via two hubs and supported by a streamlined digital infrastructure.

The draft is not yet final and awaits further updates and publication.

Implementation targets initial legislation by mid-2027, followed by subsequent laws, aligning with prior coalition commitments between Union and SPD.

Digital modernization is central, including a centralized service portal to eliminate repeated data entry, longer approval periods, flat-rate rules, and simplified documentation to improve public finances and the labor market.

The plan envisions consolidating four existing authorities into two main contact points—Jobcenters for employable individuals and municipal social welfare offices for non-working people—potentially requiring a constitutional change for full consolidation.

A German government commission proposes a sweeping social-state reform that merges Bürgergeld, Wohngeld, and Kinderzuschlag into one unified welfare system, with a simplified administration and faster access to benefits.

The final report to Federal Labour Minister outlines structural changes, anticipated administrative benefits, and political hurdles.

The reform process emphasizes rapid digitalization and legal simplification within six months to produce a detailed concept, followed by parliamentary processing, with a goal to finish the overall reform by the end of 2027.

Automatic, non-application-based payments of Kindergeld to eligible parents are proposed, leveraging data and requiring broader digital infrastructure and relaxed data-protection rules.

Income reporting would be adjusted to incentivize work, with very low incomes receiving stronger transfers, higher incomes receiving less offset, and the non-taxable allowance reduced from 100 to 50 euros.

Data coherence and streamlined verification aim to reduce multiple applications, extend benefit eligibility, and improve efficiency across benefits.

The commission traces its formation to a CDU/CSU–SPD coalition agreement, with involvement from eight federal ministries and major regional and municipal bodies; leadership is associated with Bärbel Bas and other party figures.