Response to Supreme Court Ruling on 2013 Public Assistance Standards

In its June 27, 2025, ruling, the Supreme Court found errors and omissions in the Minister of Health, Labour and Welfare's decision-making process and procedures for the deflation adjustment in the revision of public assistance standards implemented in 2013, and ruled the revision unlawful. The Ministry of Health, Labour and Welfare expressed deep regret that additional payments had become necessary and apologized to the public, including the plaintiffs.

After the ruling, an expert committee was established under the Social Security Council's Livelihood Protection Standards Subcommittee and compiled its report on November 18, 2025. The national and local governments held working-level consultations starting in October 2025, and in November held consultations between the Minister of Health, Labour and Welfare and local government leaders. Based on these discussions, the direction for the response was announced on November 21.

The operative part of the ruling overturned the administrative decisions at the time to change public assistance for the plaintiffs in the Osaka and Nagoya lawsuits, while dismissing their claims for state compensation against the government. In its reasoning, the Court found that the adjustment for distortions could not be said to lack a reasonable relationship with objective figures, but ruled the deflation adjustment unlawful because using only the rate of price changes as a direct indicator was inconsistent with expert knowledge.

The Ministry of Health, Labour and Welfare apologized to the public, including the plaintiffs, because the ruling found the revision unlawful and additional payments became necessary.

In light of Article 8, Paragraph 2 of the Public Assistance Act and its principle of impartial and equal treatment under Article 2, the government announced a policy of making uniform additional payments to plaintiffs and non-plaintiffs. To achieve a one-time resolution of the disputes, plaintiffs will receive, in place of public assistance payments, special payments funded through budgetary measures equivalent to the level without a housing adjustment. Expenses for additional payments and related measures were included in the fiscal 2025 supplementary budget, which was enacted by the Diet on December 16, 2025. The special measure notice was promulgated on February 20, 2026, and took effect on March 1.

Eligible people are those for whom basic living expenses, daily necessities expenses for hospitalized patients, or basic living expenses for residents of care facilities were calculated under the assistance standards during the calculation period. This includes people whose assistance is currently suspended or has been discontinued.

Covered items are the Category I and Category II standard amounts for people living at home, regional winter supplements, year-end temporary assistance, basic living expenses under the standards for relief facilities and similar institutions, various supplements, daily necessities expenses for hospitalized patients, basic living expenses for residents of care facilities, and the minor deduction. The various supplements include those for expectant and nursing mothers, people with disabilities, residents of care facilities, patients receiving care at home, people with radiation injuries, and single-parent households. From April 2022, the minor deduction was renamed the deduction for people under 20.

The eligible period and payment amount vary according to receipt status, the items calculated, and the period. Category I and Category II standard amounts and the at-home portion of the single-parent supplement are covered through September 2018. Regional winter supplements are generally covered from August 2013 through September 2015, but only for Category II and relief facilities and similar institutions. These periods are explained as reflecting, respectively, the review of standards in October 2018 and the review of standards for fiscal 2015.

The payment amount is the equivalent difference that would result from replacing the deflation adjustment rate used in 2013 with a housing adjustment rate based on consumption patterns, taking into account the expert committee's discussions. It is calculated by multiplying the amount under the public assistance standards applicable during the calculation period by a payment rate that yields the equivalent difference.

The Ministry of Health, Labour and Welfare is working with local authorities to provide additional payments. The Ministry has also opened the 'Consultation Center for Additional Public Assistance Payments Following the Supreme Court Ruling' as a ministry-commissioned project. The 2013 revision was based on two approaches: a deflation adjustment and an adjustment for distortions in standard amounts by age, household size, and regional classification, based on the Standards Subcommittee's review.