Social welfare expenditures in Germany rise by six percent to around 57 billion euros in 2025

Assistance for special social difficulties

The President of the German Association of Cities, Jung, pointed out in a conversation with the Neue Osnabrücker Zeitung the growing burden on municipalities. He made clear that the rising social expenditures place considerable financial challenges on cities and communities. The municipalities bear the bulk of the costs for social welfare directly from their budgets.

The background to this development is a combination of higher case numbers and increased per-capita expenditures. Experts point out that both the number of benefit recipients and the average expenditures per case have increased. The costs for housing, heating, and health assistance are developing particularly dynamically.

Municipalities under financial pressure

The Association of Cities is therefore calling for greater financial involvement of the federal government in social expenditures. Without relief for municipal budgets, the scope for action of cities in investments in education, infrastructure, and integration will continue to shrink, warned Jung. A reform of the financing structures is urgently needed.

From the perspective of the social welfare associations, the rise also reflects a growing need in the population. They see the figures as an indication that existing security systems are reaching their limits and that targeted assistance for particularly burdened groups needs to be expanded.

Background: What social welfare encompasses

The Federal Statistical Office had previously pointed out that social expenditures are a central indicator of the social situation in Germany. The annual survey includes social welfare benefits under the Twelfth Book of the Social Code (SGB XII), which also includes basic security in old age and in cases of reduced earning capacity.

For the coming years, municipalities and associations expect a further increase in expenditures. If federal participation is not adjusted, there is a threat of a widening gap between rising mandatory expenditures and declining freely available funds in municipal budgets, according to the Association of Cities.