Following the guidelines of the German Federal Constitutional Court in its ruling of 9 February 2010 on reforming the basic benefits for job seekers, Ursula von der Leyen, Federal Minister of Labour and Social Affairs, proposed the introduction of an “educational credit card”. The educational credit card is conceived as an electronic means of payment, similar to a prepaid telephone card with a fixed number of calling units. It can be recharged with a specific amount of credit and used for the payment of material and services in the educational field. It is intended to be issued to children and adolescents from families that receive social welfare (Hartz IV) and enable them to take part in educational support measures such as after-school tutoring, sport clubs or music schools. Also purchases of school materials as well as daily school meals are to be subsidised by means of the card.
In its ruling of 9 February 2010 the Federal Constitutional Court stated that (court decision) the calculation of the basic welfare benefits for adults and children is not in conformity with the constitutional right to a humane subsistence level.
Thus the court ruled that the current methods for calculating Hartz-IV benefits are unconstitutional on the whole and that a correction is required, especially in calculating the benefits for children and adolescents. In future the rates for children must not be derived from the benefits that adults receive but must be calculated independently, taking into account the legal right of children and adolescents to educational assistance.
In order to comply with this ruling, Minister Ursula von der Leyen proposed an educational package. This package does not foresee cash payments but instead a targeted promotion of materials and services for the direct benefit of the children without their parents being able to use the subsidy as they please.[1]. One proposal for the payment of these materials and services is the introduction of the educational credit card.[2]
The Federal Constitutional Court gave the legislator little time for complying with the ruling on the right to educational assistance that will apply as of 1 January 2011.
On 20 October the Federal Government introduced a bill for the determination of standard benefits and for reforming the Second and Twelfth Books of the German Social Code (see press release of the Federal Ministry of Labour and Social Affairs of 20 October 2010[3]). Both the job centres and the municipalities will be entrusted with the implementation of the educational package, whereby in addition to billing via a voucher or educational credit card model also a direct transfer will be possible. Not only the children receiving basic social welfare are to benefit from the services of the educational package but also children whose parents receive a child supplement.[4]
The Federal Ministry of Labour and Social Affairs plans to test the educational credit card, i.e. an electronic system for purchasing the services of the educational package, in selected regions in the course of the coming year. Whether the educational credit card – as originally planned – will be introduced nationwide in 2012 is still open.
Some objections have been raised to the educational credit card. They extend from technical difficulties to problems of competition law and doubts as to whether parental custody will be compromised. Also a possible stigmatisation and data protection issues have been added to the criticism.
[1] The package consists of the four components: learning-promotion, a basic school kit, a subsidy for lunch in kindergartens or schools and assistance for participation in cultural, sports or vacation activities. [2] Some cities and municipalities have already gained experience with similar instruments. Since 2001, Stuttgart, for example, has issued a Family Card. Children and adolescents receive a chip card with an annual credit or 60 euros. With this amount specific services, such as swimming pool or zoo visits, can be paid. Furthermore, card holders receive a 20% reduction at music schools, for example. Children and adolescents not older than 16 years and with their primary residence in Stuttgart qualify, provided that the total amount of their family’s revenue does not exceed 60,000 euros. Families with four and more child receive the Family Card independent of the amount of their earnings. [3] Debate on the bill is planned for the end of October. The second and third reading is planned for the beginning of December (status: October 2010). [4] Parents with incomes above the subsistence level but that does not suffice for adequate support of their children receive the child supplement.
Bundesministerium für Arbeit und Soziales: "Bildungspakt und Regelsätze"
Bundesministerium für Arbeit und Soziales, "Gezielte Bildungsleistungen sind ein Riesenfortschritt für die Kinder – Bundeskabinett beschließt Gesetzentwurf zur SGB-II-Leistungsrechtsreform" (Pressemitteilung vom 20. Oktober 2010)
Bundesverfassungsgericht: "Leitsätze zum Urteil des Ersten Senats vom 9. Februar 2010"
“Bildungs-Card: Richtige Antwort auf das Urteil zu den Harz-IV-Regelsätzen?”, contributions by Ursula von der Leyen, Christine Haderthauer, Gerd Landsberg, Axel Plünnecke, Holger Bonin, ifo Schnelldienst 63(18), 2010, 3–17. (Abstract)
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