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Caritas urges Germany to cut social costs amid household financial strain

With budgets stretched thin, a leading charity warns of shrinking incomes—unless Berlin acts now. Will Tuesday's talks bring real relief for struggling families?

The image shows a blue background with text and a logo that reads "President Biden is saving...
The image shows a blue background with text and a logo that reads "President Biden is saving millions of Americans covered by the Affordable Care Act $800 per year on health insurance".

Caritas urges Germany to cut social costs amid household financial strain

Eva Welskop-Deffaa, President of Caritas, has called on the federal government to ease financial pressure on households. She highlighted rising energy prices and growing social insurance payments as key factors reducing disposable income. Her demands come ahead of a coalition committee meeting on Tuesday to discuss relief measures for citizens. Welskop-Deffaa urged a reduction in social security contributions to help struggling families. She also pushed for the federal budget to cover non-contribution-based costs in the social insurance system. These include health insurance premiums for basic welfare recipients and pandemic-related expenses in long-term care insurance.

The call follows the recent rejection of a planned relief bonus by the Bundesrat. With households facing tighter budgets, she stressed that the government must step in to prevent further financial strain.

On Tuesday, the coalition committee of CDU/CSU and SPD will review possible financial relief options. Welskop-Deffaa insisted that without government intervention, disposable incomes will continue to shrink under current economic pressures. The proposed measures aim to shift some social insurance costs onto the federal budget. If adopted, they could relieve pressure on low-income households. The outcome of Tuesday’s coalition talks will determine the next steps for financial support.

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