LIFE ON welfare in Germany is a curious business for Michael Kaiser, a 52-year-old unemployed electrician from Bavaria.
For each of his five children, he is allowed collect an €11.90 monthly allowance for alcohol and cigarettes, but no money for nappies, shoes or child care.
Yesterday Mr Kaiser claimed victory on behalf of Germany’s 6.7 million welfare recipients when the country’s highest court threw out existing welfare rules and opened the door to billions in extra payments.
Five years ago, as part of an overhaul of its social welfare system, Germany began calculating the financial needs of children based on a sliding scale of 60 to 80 per cent of the adult allowance. Mr Kaiser says this formula – allowing him €287 allowance per child – ignores the fact that children are expensive, growing creatures.
“They didn’t think of the costs for nappies, or that children grow and constantly need new clothes and shoes,” he said.
The constitutional court agreed, describing the system as a violation of constitutional guarantees on human dignity and “special state protection for the family”.
Berlin now has until the end of the year to present a new child allowance formula, something analysts suggest could add an extra €6 billion annually to Germany’s €40 billion welfare bill.
The ruling couldn’t have come at a worse time for the German authorities. In Berlin, federal borrowing is likely to top a record €80 billion this year while cash-strapped local authorities may be forced to top up rent allowance payments.
The ruling has focused attention back on reforms the Schröder government pushed through five years ago to halt what it described as out-of-control welfare spending.
Unions and other long-time reform critics welcomed the ruling, saying the reforms have contributed to a rise in child poverty and social exclusion.
Under the Hartz rules, payments for children on welfare vary from €207 to €287. A 12-year-old child is entitled to €3.10 a day for food while a 17 year old is allowed €28.70 a month for clothes.
“We’re not demanding luxury, just what is needed for a child’s development to give it the same start in life as anyone else,” said Peter Schmitz, the Kaisers’ lawyer.
German family minister Ursula von der Leyen has promised a swift reaction to what she described as a “ground-breaking ruling”.