Styria rejects federal social assistance reform

Styria has rejected Austria’s proposed social assistance reform, with state councillor Hannes Amesbauer saying he will boycott another information meeting in Vienna. The FPÖ politician set out his objections on Thursday, shortly before the consultation period on the draft law was due to end, ORF reported.

Amesbauer called the process a “sham consultation” and warned that the reform could bring costs of millions of euros and restrict Styria’s relatively new social assistance model. He said the federal government had not involved the states in the final drafting, despite their responsibility for implementing, administering and substantially financing the system.

He said the states had held talks and working groups at administrative and political levels until early 2026, but received no further drafts or updates on the reform after that. The consultation period of three weeks was too short, he said, and should have lasted at least six weeks for such a complex law.

Styria’s main objection is the planned abolition of existing maximum rates in favour of mandatory benefit amounts. The state currently applies a rate for single adults set at 95 percent of the net reference rate for the compensatory allowance. Under the federal proposal, that would no longer be possible, raising the calculation basis for single adults and potentially increasing payments for other adults and children in a household.

Amesbauer also argued that states, particularly Vienna, would retain room to provide higher benefits, undermining the stated goal of greater national uniformity. He questioned how the government could expect the new integration phase to generate savings in every state while requiring Styria to raise benefits that are currently lower.

The proposed integration phase would link social assistance more closely to learning German, civic values and willingness to work. Amesbauer said the plan instead created a complex system of basic payments and integration supplements that would increase administrative work. He also criticised what he described as weaker sanctions and called the nine-month implementation deadline unrealistic.

He said Styria would seek compensation from the federal government if the draft were pursued and led to an obligation to provide replacement payments. The federal government says the reform is intended to make benefits more consistent across Austria, encourage people to enter work and better protect children.