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Citizens' money under pressure: expenses are rising, reforms promise savings
The Citizens' Benefit Reform 2025: Rising expenses, strict sanctions and political controversies are shaping the social landscape in Germany.
Citizens' money under pressure: expenses are rising, reforms promise savings
In the first six months of 2025, spending on citizens' money will rise to unprecedented levels. Loud az online The recipients' payment claims amount to 23.55 billion euros, which is 240 million euros more than in the previous half-year. This development drives the total cost of citizens' money to an estimated 52 billion euros, an increase from the previous 47 billion euros.
Expenditures have increased by over 11% since the introduction of citizens' money in 2023, which corresponds to approximately 2.41 billion euros. Chancellor Friedrich Merz of the CDU has set his sights on ambitious savings of up to five billion euros annually, but the reality is different: the draft law for 2026 only expects savings of 86 million euros. The German Economic Institute (IW) also expresses doubts about the feasibility of these savings.
Regulations and sanctions
The current regulations regarding citizens' benefit stipulate that the sanctions will gradually increase if appointments at the job center are missed. For example, if you are absent without excuse the first time, you will have to expect a reduction of 10% of the standard rate. The second time it is 20% for two months and the third time it is 30% for three months. However, thanks to the agreement between the Union and the SPD, a new invitation will be issued immediately if there is a first failure. If you don't show up again, 30% of your benefits will be canceled straight away, and a third offense will even result in the money and accommodation costs being completely canceled. Exceptions apply to people with physical or psychological limitations, such as br.de reported.
The situation is becoming increasingly challenging, particularly for the long-term unemployed. Over 80% of employable citizens' benefit recipients are considered difficult to employ. This also explains the low number of sanctions, which will affect around 202,000 people in 2024 and 2025 - less than 5% of those receiving them. However, Labor Minister Bärbel Bas maintains the need to use sanctions specifically to motivate people.
Employment and job placement
In view of the current challenges, the job center has already taken measures to support vulnerable groups. The head of the Munich job center, Florian Eder, sees the reform plans as a pragmatic opportunity to help those seeking advice. He emphasizes the need for citizens to be actively involved in the job placement process, as well as by zdf.de reported.
However, many, including the head of the German Trade Union Confederation, Yasmin Fahimi, express concerns about the reform. She emphasizes that there is no mass misuse of citizens' money. At the same time, the question arises as to whether the targeted 100,000 withdrawals from benefit receipt are realistic, as the number of newly reported vacancies has fallen compared to the previous year.
In the discussion about citizens' benefit, it becomes clear that older people and the long-term unemployed in particular could suffer particularly from the planned changes. The concerns of those affected, like 61-year-old Alexandra Leonardelli, are not unjustified. She fears that the reform will not have the positive effects hoped for and could instead lead to more homelessness and health problems.