25 March 2020 – Introduced financial support for social service providers

Intervention Categories: Finance policy and financial aid; Stimulus packages and financial support
Level of Jurisdiction: National

Overview: The German Government introduced a legal basis for service providers to continue making payments to social service providers and institutions, regardless of whether or not they actually carry out their originally agreed service.

It is based on an amount which, in principle, is equivalent each month to a maximum of 75 percent of the average amount of the last 12 months. In return, social service providers should support crisis management with the capacities at their disposal.

In Germany, social service providers are remunerated by service carriers (“Leistungsträger”) for providing social services. Social service providers as not-for-profit entities are not allowed to build up financial reserves and usually cannot access credit.
Full details here: https://www.bmas.de/SharedDocs/Downloads/DE/Thema-Soziale-Sicherung/einsatz-absicherung-sozialer-dienstleister.pdf