Berlin – More than three years after its introduction, the Bürgergeld is being abolished. The Bundestag today approved the change, with the fresh Grundsicherung set to accept effect on July 1st. This impacts approximately five million people. The Bürgergeld faced significant criticism from the outset – deemed too expensive, bureaucratic and lenient towards those unwilling to operate. The new law aims to be more than just a name change.
Prior to the vote, a heated debate took place regarding the reform of the support system. SPD member Jens Peick stated that the goal of the schwarz-rot (black-red) government with the Grundsicherung is to “obtain people into work.” He characterized the reform as a “sharpening” rather than a major systemic change. Peick clarified, “Anyone who follows the rules will not be affected.” He further stated, “Anyone who paints a picture of the collapse of the welfare state is guilty of populism.”
Linnemann: “It Had Gotten Out of Hand”
Will the new Grundsicherung truly get more people into work and save costs? AfD member Gerrit Huy has her doubts. She also warns of potential abuse, stating, “We find no prior checks of foreign funds.” Huy believes that “SUVs of Bürgergeld recipients” will continue to appear before the offices.
CDU General Secretary Carsten Linnemann admitted that “something had gotten out of hand” with the Bürgergeld. He stated that the new Grundsicherung will build the system fairer. Green Party member Timon Dzienus sharply criticized the CDU, accusing them of consistently blaming individual population groups for the country’s problems, in this case, Bürgergeld recipients. He described the Grundsicherung as “unsocial garbage,” arguing it demonstrates a “fundamental distrust of the population” within the governing coalition.
What exactly did the Bundestag decide? Changes include rules regarding rent and heating costs, asset limits, and penalties.
Rent and Heating
Reasonable rent and heating costs will generally continue to be covered. However, those living in excessively large or expensive apartments (rental amount depends on the city) will now be required to move more quickly. The previous 12-month protection period (“grace period”) will no longer apply. An exception exists for families with children: up to 1.5 times the rent considered appropriate will be reimbursed for the first twelve months.
Assets
The rules regarding assets will be significantly stricter under the Grundsicherung. The one-year grace period with a flat asset allowance of 40,000 euros per person, which applied to the Bürgergeld, will be eliminated. The asset allowance will now be tiered based on age:
- Up to 30 years: 5,000 euros
- From 31 years: 10,000 euros
- From 41 years: 12,500 euros
- From 51 years: 20,000 euros
This means younger recipients will have to deplete their savings more quickly. Even for older individuals, the maximum allowance is now only 20,000 euros.
Benefit Rates
The benefit rates will remain unchanged. Single individuals will receive 563 euros monthly, each partner 506 euros, and children will receive between 357 and 471 euros per month, depending on their age.
Penalties
Previously, missing appointments at the job center could result in a reduction of the Bürgergeld by ten percent, gradually increasing to 30 percent. Now, the job center can directly reduce the Grundsicherung by 30 percent (169 euros per month) for up to three months. This applies to recipients who discontinue training or fail to apply for jobs.
Attention: Missing three job center appointments will result in no benefits at all. In the case of single individuals, even rent payments could be canceled. However, the cancellation of housing costs is not possible if other family members, such as children, live in the apartment.
There is some relief: those with mental health issues that make it difficult to attend appointments will not be automatically sanctioned. And young people in difficult life situations will receive more intensive support in the future.
Frequently Asked Questions
What is the Grundsicherung?
The Grundsicherung is the new name for the Bürgergeld, and it involves more than just a name change. It includes stricter rules regarding assets, housing, and penalties for non-compliance.
When will the Grundsicherung take effect?
The Grundsicherung will take effect on July 1st.
Will the amount of benefits change?
The benefit rates will remain unchanged. Single individuals will receive 563 euros monthly, each partner 506 euros, and children will receive between 357 and 471 euros per month, depending on their age.
How will these changes impact the long-term effectiveness of social support programs in Germany?
