Training grants for on-the-job retraining are rarely used

The so-called “training allowance,” which the “traffic light” coalition government introduced in 2024, is virtually unused. By the end of 2025, the program had reached fewer than 400 employees, as the “Handelsblatt” reported, citing a parliamentary inquiry from the Green Party. According to the report, only about 550,000 euros were drawn down—out of several hundred million euros that had been budgeted for the program. The Skilled Trades Association attributes the program’s failure to the excessive requirements the law imposes on companies before the funds are disbursed…