Hot Off the Press: Supreme Court's Welfare Benefit Appeal Verdict Looming
Benefits from Welfare Decreased by around 3 Trillion Yen between 2013 and 2018
The Japanese government's controversial welfare benefit cuts from 2013-2015, reducing benefits by around 300 billion yen (approx. $2.1 billion) over a five-year period, have sparked a series of lawsuits. These lawsuits, filed by disgruntled recipients across the nation, seek to overturn the benefit decreases [1][2].
Come June 27, 2025, the Supreme Court will announce its judgments in two separate cases - one from the Osaka High Court and the other from the Nagoya High Court. Interestingly, the two courts have delivered differing rulings on the matter [1][2]. If the plaintiffs succeed, the government may potentially be obligated to reimburse the withheld benefits.
The welfare reductions affected the period from August 2013 to September 2018. During this span, the number of recipients fluctuated between about 2.09 million and 2.16 million [3].
The ministry's approximate fiscal impact of the first reduction was around 15 billion yen in fiscal 2013, while the second reduction approximated 26 billion yen in fiscal 2014. The third cut also accounted for approximately 26 billion yen in fiscal 2015 [3]. The ministry has not issued an estimate for fiscal 2016 and beyond, but the scale of reduction has remained consistent due to minimal changes in the beneficiary count [3]. Following the implementation of a new standard amount revision in October 2018, it is estimated that the reduction for fiscal 2018 was 33.5 billion yen, roughly half of the 67 billion yen for fiscal 2015 [3].
A ministry official commented on the estimated figure, stating, "It is not a figure issued by the ministry, but I can't say it is incorrect." [3]
Attorney Tetsuro Kokubo, representing the plaintiffs in the Osaka lawsuit, expresses that if the plaintiffs win this court battle at the Supreme Court, "The government should issue an apology to all recipients and compensate accordingly based on the original standard amount prior to the reductions" [3].
[Copyright The Jiji Press, Ltd.]
- Keywords
- Japan
- Welfare Benefits
- Supreme Court
[Sources]1. Japan Times2. Mainichi Newspapers3. Job Style (Japanese)
- The international media is closely following the impending Supreme Court verdict on the welfare benefits appeal case in Japan, as the decision could have significant implications for the Japanese economy and politics.
- The ruling will not only affect the general-news landscape in Japan but could also influence business strategies in the social welfare industry due to potential repercussions on future budget allocations.
- If the Supreme Court rules in favor of the plaintiffs, it may have far-reaching consequences, including possible reimbursements to beneficiaries, affecting both finance and the overall economy.
- The case underscores the intricate relationship between politics, finance, and business, as the government grapples with finding a balanced approach to dealing with welfare benefits in Japan.
