The cost of Germany’s citizen’s allowance (Bürgergeld) has risen to €47 billion in 2024, prompting calls for a reassessment of the system’s design and potential consequences. Marc Biadacz, parliamentary spokesperson for the CDU/CSU parliamentary group, characterized the escalating expenditure as a “wake-up call” emphasizing the pressing need for reform. He urged the Federal Ministry of Labour, led by Minister Bärbel Bas (SPD), to deliver on promised changes.
The core of the desired reform centers on a new basic income system, as previously agreed in the governing coalition, that prioritizes employment, strengthens vocational training and implements clearer obligations for recipients. Concerns have been raised that the current Bürgergeld system unintentionally creates disincentives, failing to adequately encourage job acquisition and individual responsibility. The allowance rates saw significant increases in 2023 and 2024, partly due to a disproportionate adjustment for inflation, with a so-called “zero round” planned for 2025.
Enzo Weber, from the Institute for Employment Research (IAB), is advocating for a revised mechanism to address inflation fluctuations more effectively while avoiding volatile adjustments. He also voiced concerns regarding the coalition’s plan to provide Ukrainian refugees arriving after April 2025 with lower-level benefits typically reserved for asylum seekers rather than Bürgergeld. Weber cautioned that removing these refugees from the Bürgergeld system would eliminate access to vital advisory services, job placement assistance and training programs, potentially leading to fewer employment opportunities and increased overall costs.