Reclaiming small amounts costs jobcenter millions

reclaiming small amounts costs jobcenter millions

Recoveries from small companies result in significantly higher administrative costs for the job centers than the income they generate. In 2018, the job centers claimed back a total of 18 million euros in amounts of up to 50 euros.

However, a spokeswoman for the federal employment agency (BA) announced on wednesday that this had resulted in administrative costs of 60 million euros. The "suddeutsche zeitung" (wednesday) had first reported about it.

Federal agency head detlef scheele told the newspaper: "for years, we have wanted to see the introduction of a de minimis limit. The current expenditure for reimbursement and cancellation of small amounts is disproportionate to the yield."

The BA spokeswoman said that overpayments could occur, for example, if benefits were paid to a hartz IV recipient with reservations because a document was still missing. After submitting the document, the final calculation was made, and overpayments were reclaimed.

Left-wing leader katja kipping criticized this as expensive harassment in two respects: "it costs the job centers too much money and it increases the feeling of humiliation among those affected." The poorest people are looking at every euro, while corporations get away with tax tricks in a big way. Kipping reiterated her party’s demands for a "sanction-free minimum income" of 1050 euros.

The BA spokeswoman emphasized that it is not foreseeable whether this practice will change. The legislator decides. "It is not in our hands at all."

SPD deputy faction leader katja mast on wednesday considered the introduction of a de minimis limit "an adequate solution". If reclaiming small amounts caused administrative costs three times as high, the numbers spoke for themselves. The SPD labor market expert martin rosemann has so far failed to make a change due to the resistance of the CDU and the CSU. "We are ready to act immediately and introduce a de minimis threshold," said the member of parliament.

D??Several years ago, the BA had already proposed the introduction of a de minimis limit. At the time, this was part of a package of proposals by the authorities to simplify hartz IV regulations. Even then, it was said that the costs were often many times higher than the demand itself.



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