Government projections for expenditures on Germany’s citizen’s allowance (Bürgergeld) indicate a slower rate of decline than previously anticipated, with a potential for renewed increases in the medium term, according to a report in “Bild” newspaper.
Official documents pertaining to the 2025 federal budget and medium-term financial planning suggest that spending on the basic rate and housing costs will decrease by €1.5 billion in 4026, bringing the total to €41.1 billion. Further reductions are projected for 2027, with a decrease of €900 million to €40.2 billion.
These projections represent a €600 million adjustment downwards from figures circulated by government sources last week. The draft budget anticipates a further reduction of €600 million in 2028, bringing citizen’s allowance expenditure to €39.6 billion. A slight increase of €100 million is then expected in 2029, reaching €39.7 billion.
A spokesperson for the Federal Ministry of Labor and Social Affairs (BMAS) confirmed to “Bild” that the draft budget is currently undergoing review. They noted that it accounts for the effects of planned legal changes related to the citizen’s allowance.
Business associations are voicing concerns about the lack of a comprehensive strategy from the German government regarding the citizen’s allowance. Steffen Kampeter, Managing Director of the German Association of Employers’ Associations (BDA), stated that Minister Bas has yet to implement her proposed changes at the Labour Ministry and that Germany cannot afford a system of this size. He emphasized the difficulties many employers are facing in finding staff.
Similarly, Oliver Zander, Managing Director of Gesamtmetall (an association of industrial employers), commented that there’s a lack of a clear agenda for curbing long-term dependence on the allowance. He argued that the current system allows individuals to receive citizen’s allowance for years or even decades simply by adhering to administrative regulations. He believes that substantive savings can only be achieved when recipients transition from benefits to regular employment.