Vorarlberg warns social welfare reform will shift costs

Vorarlberg’s government says a planned social welfare reform could increase costs and administrative work for states and municipalities. In a statement on the draft Integration Obligations Act, which is linked to the reform, it also warned of added pressure on district authorities and public medical services, ORF Vorarlberg reported.

The federal government says the reform would link social assistance more closely to integration and efforts to find work. Vorarlberg’s government does not oppose that aim, but said the states were given too little time to review the draft and that its financial impact had not been adequately explained. It said any additional costs for the states should be covered by the federal government under the consultation mechanism.

Under the proposed rules, employable people covered by the new integration programme would initially receive a basic payment of 861 euros. Those who meet integration requirements, such as attending German and values courses, could receive a supplement no earlier than four months after applying, bringing the amount to about 1,016 euros. The full payment of 1,230 euros would require additional proof of willingness to work. Other employable people who have not yet integrated, including Austrian citizens, would receive a basic amount of 1,016 euros.

People entitled to protection and other participants in the programme would also lose access to the Public Employment Service’s allowance for living costs during the three-year integration phase. The allowance supports people taking courses or training who have little or no entitlement to unemployment benefit or emergency assistance. The federal government expects to save up to 30 million euros a year at the employment service and redirect the money to labour-market integration training. Vorarlberg says the resulting costs would fall mainly on the states and municipalities, which fund social assistance. The federal government argues that the reform would be cost-neutral overall because it would also generate savings for the states.

The state also expects more work for public doctors. The draft would extend exemptions from integration obligations to a wider group, including family members who have joined relatives, people entitled to protection and displaced people. An official medical assessment would have to explain why someone could not take part in the programme. Vorarlberg says its public medical services lack the staff for the additional workload.

District authorities could also face more cases because the employment service and the Austrian Integration Fund would have to report breaches of obligations. The state has also criticised proposed penalties of up to 5,000 euros.