Coalition Seals Deal on Citizen Basic Income Reform Ahead of Bundestag Vote

Coalition Seals Deal on Citizen Basic Income Reform Ahead of Bundestag Vote

Union and SPD have reportedly settled the remaining disagreements over the Bürgergeld reform. According to reports in “Stern” and statements from coalition circles, the bill is set to be passed by the Bundestag on Thursday morning, ending a key conflict within the alliance.

During the parliamentary discussion, the focus narrowed to details. Jobcentres will receive greater flexibility to facilitate re‑entry into employment than originally outlined in the cabinet draft. In hardship cases, the new maximum rent limits will be applied more leniently-especially when children are part of the household.

Conversely, penalties for missed appointments will be tightened. Jobcentres may now require an official medical certificate rather than just a primary‑care doctor’s note. Employers will face stricter enforcement for social‑benefit abuse. These final points were negotiated by Union faction leader Jens Spahn and SPD faction leader Matthias Miersch.

Overall the reforms call for swifter sanctions and a stronger emphasis on job placement over training. After a third missed appointment, payments-including accommodation support-will be suspended. Before benefits are entirely discontinued, recipients will have the right to a personal hearing. Housing size and rent regulations will also become stricter.

The updated basic security is expected to be approved by the Bundesrat in March, with the new law slated to take effect on 1 July 2026.