Payment card instead of benefits in kind in Hesse

IIn the Main-Taunus or Rheingau-Taunus district, some will still remember the turbulent time when the administration tried in various ways to enforce the then newly passed Asylum Seekers Benefits Act around 30 years ago. In previous years, the number of refugees had increased so dramatically that the municipalities complained, as they do today, that they were unable to cope with the care and accommodation of the people.

The new law was intended to reduce the number of asylum seekers – and also had an effect in the following years. At that time, social benefits were cut, the third country regulation was introduced, according to which asylum procedures should generally be carried out in the countries on the EU's external borders, safe countries of origin were designated and more deportations were made, and finally it was demanded that asylum seekers be given “priority” in the first year of their recognition procedure “ Benefits in kind, and in exceptional cases also vouchers, should be received. The idea was that cash would attract economic refugees and be sent to families and smugglers in the countries of origin.

Old solution in a new guise

But the idea of ​​benefits in kind was actually more difficult to implement than expected. For example, because only asylum seekers received food packages in the first year, but mostly lived with others who had been in Hesse for a long time – this created dissatisfaction. Or the new arrivals were spread across many places of residence, such as in Frankfurt, and were therefore difficult to reach for food deliveries. Six months after the Asylum Seekers Benefits Act came into force, the Wiesbaden Ministry of Social Affairs said that it had not been “fully implemented” anywhere.

After a year, the Rheingau-Taunus district tried vouchers instead of benefits in kind, for which dealers then had to be won as cooperation partners. Finally, civil war refugees from the former Yugoslavia successfully sued against the payment of their social assistance in kind. In the Main-Taunus district, some citizens demonstratively bought the previously delivered food packages from asylum seekers. Refugees should be allowed to decide for themselves how they spend their money.

30 years later, the Prime Minister's Conference is now pinning its hopes on a payment card that will again avoid cash payments to refugees except for pocket money. However, as early as December, Frankfurt department heads Elke Voitl and Bastian Bergerhoff (The Greens) warned against the introduction of a payment card because, in addition to stigmatizing refugees with a recognizable card, they also feared additional work for the city administration, for example because contractual partners would have to be found which people could then shop.

The wishes of the municipalities should be taken into account

Jörg Schwitalla, who initially gained experience with his company Publk's social card in Hanover, does not see these difficulties. The collaboration with the state capital of Lower Saxony began in 2022, which wanted to relieve the burden on clerks with a payment card. Schwitalla is convinced that he can offer every municipality a tailor-made solution because different restrictions can be linked to his social card – depending on the wishes of the administration.

For example, the map could only be usable in Germany or only in one region, linked to a postal code. Internet purchases can therefore be completely excluded or only possible from providers based in Germany. At the same time, individual providers such as Deutsche Bahn can be activated. Whether you can use the card to withdraw cash from an ATM and how much can also be determined in advance. But in his experience, most municipalities would rather forego restrictions anyway.

What the asylum seekers then get in their hands looks like a normal plastic card, it even has Visa on it because Publk works with the payment card provider. “We don’t want any stigmatization,” says Schwitalla. However, it is not a credit card that accesses an account that can be overdrawn at the end of the month, but a debit card that is limited to a specific balance. Once it is used up, the social card can no longer be used. At least until the beneficiary receives a new payment next month. If you want, you can also have your Socialcard loaded onto your smartphone as a digital payment option.

The nationwide introduction of a payment card will probably take many months, Schwitalla suspects. But some municipalities don't want to wait and are looking for isolated solutions that can be implemented quickly. In some municipalities in the region, representatives from various payment card providers have already been asked to get to know each other.