The state is, however, responsible for the existence of these social institutions, and for their ability to function, although it is not involved in their running. The state only becomes involved in areas where no one else is prepared to do the work. The financial resources for many welfare services will be provided by the care insurance, to which the employer and employee both contribute equally. Other services, such as benefits for people with little or no income, as well as asylum-seekers, will be met from taxes. This year, the non-governmental welfare organisations will have much more work, as the state is beginning its reform of the welfare system.
Industry says that social payments are making production more expensive, and endangering jobs.
Welfare organisations point out that the necessary economic measures must not be borne only by the most vulnerable members of society. Therefore, they criticise the government's plans to restrict supplementary benefits and to defer an increase in child allowance, as well as reducing the sickness benefit. In May, the welfare organisations and the Churches met German Trades Unions for the first time, to campaign together against the reduction in welfare benefits. At the same time, they asked the government to look with them into ways of restructuring the welfare state, that would spread the burden more fairly over the very different groups in society.