The German Bundestag is set to debate a proposal by the governing coalition led by Friedrich Merz (CDU) to end Bürgergeld payments for Ukrainian refugees who arrived after March 31, 2025. Currently, Ukrainian refugees receive Bürgergeld, a form of basic income support, but the proposed legislation would shift new arrivals to the lower benefit levels provided under the Asylum Seeker Benefits Act.
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The debate comes after months of discussion and is scheduled for Thursday, January 15, 2026. Those who arrived before April 1, 2025, and are already receiving Bürgergeld would be eligible for a transition period of up to three months with continued payments.
Marcel Fratzscher, President of the German Institute for Economic Research (DIW), cautioned that these cuts would likely impede the integration of Ukrainian refugees into the labor market and ultimately increase costs for the German state. He stated, “The cuts in benefits for refugees will make their integration into the labor market more difficult and thus increase costs for the German state in the medium term,” according to the Süddeutsche Zeitung.
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Yuliya Kosyakova of the Institute for Employment Research echoed this concern, noting that the current system, with Job Centers providing support and guidance, has been largely successful. She suggested that the proposed changes could jeopardize this progress.
The proposed legislation aims to reduce government spending. Initial estimates suggest potential savings of 680 million euros for the federal government and 50 million euros for municipalities in the current year. Savings are projected to reach 300 million and 20 million euros respectively in 2027. However, these savings may be offset by increased costs to states and municipalities – estimated at 862 million euros in 2026 and 394 million euros in 2027 – largely due to increased administrative burdens.
Frequently Asked Questions
What is Bürgergeld?
Bürgergeld is a form of basic income support in Germany, designed to provide financial assistance to those seeking employment or unable to work.
Who is affected by this proposed change?
The proposed change affects Ukrainian refugees who arrive in Germany after March 31, 2025. They would no longer be eligible for Bürgergeld and would instead receive benefits under the Asylum Seeker Benefits Act.
What are the potential consequences of this change, according to Marcel Fratzscher?
Marcel Fratzscher warns that the cuts to benefits could hinder the integration of Ukrainian refugees into the labor market and ultimately increase costs for the German state.
If the Bundestag approves the legislation, it remains to be seen how the shift in benefits will impact the integration of Ukrainian refugees and the administrative burden on German municipalities. It is possible that the projected savings will be less substantial than anticipated, given the potential for increased costs at the state and local levels.
