What changes with the welfare reform? - German government finalizes details. Tougher sanctions are expected
The German government has finalized a reform of social benefits. The benefits known as "Bürgergeld" will be abolished, but the plan is sensitive for both coalition partners in Germany. The core of the reform is a stricter and faster reduction of benefits. Monthly payments can be reduced by 30 percent for three months in cases of breach of obligations, such as refusing a reasonable job offer.
This would currently amount to around 150 euros less per month. According to the draft law, anyone who fails to attend two appointments at the job centre without a valid reason will have their benefits reduced by 30 percent. If they miss the appointment a third time, payments will be suspended entirely, while the rent will be paid directly to the landlord. But if the person in question appears at the job centre within a month, the reduced benefits will be paid retroactively. Otherwise, the right to benefits is lost completely.
But there are also expansions to the support program: The group of those eligible for subsidized employment will increase. According to government sources, in the future, the criterion for receiving assistance will no longer be the duration of unemployment, but the duration of receiving benefits. This will particularly benefit women and refugees who previously received benefits but were not officially considered unemployed, due to childcare or participation in integration courses.
According to government figures, around 5.5 million citizens and their children still living in the household received "Bürgergeld" in 2024. Of these, almost four million were of working age. This figure also includes around 800,000 so-called "supplementary benefit recipients", i.e. additional income due to extremely low wages, which is below the "Bürgergeld" level.
Foreign nationals make up about 48 percent of recipients of these social assistance programs. Those who lose their jobs receive unemployment benefits for a year, after which they are transferred to the social assistance program.
Expenditures in 2024 on citizen benefits, or "Bürgergeld", were 51.7 billion euros. This included 29.2 billion euros for standard benefit payments, 12.4 billion euros for rent and heating costs, and 3.7 billion euros for labor market integration measures.
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