The German government is planning significant cuts to welfare and pension spending in its 2025 budget.

The labor ministry, led by Hubertus Heil, faces a reduction of 4.7 billion euros in welfare payments compared to the current year.

The government aims to achieve these savings by getting more people into work through stricter requirements for welfare recipients.

Additionally, the pension system will receive less funding, with cuts of 2 billion euros over three years.

Critics, including union leader Frank Werneke, argue that these changes effectively reverse recent welfare reforms and put pressure on job seekers to accept poor working conditions.

The government defends the measures as necessary to limit spending and boost economic growth.