Japan Supreme Court Rules Up to 10% Welfare Benefit Cuts Illegal, Orders Cancellation; No State Compensation

Japan's Supreme Court ruled on June 27, 2025, that the government's cuts to welfare benefits implemented between 2013 and 2015 were illegal, marking the first unified judgment on the matter. The court found that the reductions violated the Welfare Law, which guarantees a healthy and culturally adequate standard of living. The decision invalidated the government's phased reductions of up to 10% in welfare benefit standards during that period. Although the court recognized the illegality of the cuts and ordered the cancellation of the reduction decisions, it did not mandate compensation payments from the state.

The ruling criticized the Ministry of Health, Labour and Welfare for procedural errors and omissions in the decision-making process, describing the reductions as arbitrary and lacking transparency. Welfare recipients nationwide, who had filed lawsuits challenging the cuts, secured a legal victory, and some have since requested the ministry to provide the withheld amounts. The government, including the Chief Cabinet Secretary and the Minister of Health, Labour and Welfare, has stated it will thoroughly review the ruling and respond appropriately. The ruling is expected to influence ongoing and future lawsuits related to welfare benefit reductions and poses challenges for the government's welfare policy administration. Editorials have called for the government to reflect on the illegal reductions and take corrective actions.