Criticism of citizen income concept: “demotivation” for low earners

Criticism of citizen income concept: “demotivation” for low earners

The craft association has clearly criticized the basic income concept of Labor Minister Hubertus Heil (SPD). It provides “demotivation” for low earners. In addition, the basic income does not guarantee sufficient support for the long-term unemployed.

The trade association sees false incentives for low earners in the federal government’s basic income concept. “It causes demotivation for those who work regularly with a low salary. At the lower end, the boundaries between regular work and basic income are becoming increasingly blurred,” said the President of the Central Association of German Crafts (ZDH) Hans Peter Wollseifer of the Düsseldorf “Rheinische Post”.

Many wondered why they should be working at 7 a.m. when recipients of citizen income received almost the same. “The improvements for recipients of allowances, the elimination of sanctions, the significant increase in the standard rate, the complete assumption of the sharp rise in heating costs – all of this will mean that for more people than before, not working is more worthwhile than working .” The long-term unemployed need support to get back to work. “The citizen money concept does not guarantee this sufficiently, so we do not think it is good,” said Wollseifer accordingly.

Citizens’ income around 50 euros higher than Hartz IV

The draft law by Minister of Labor Hubertus Heil (SPD) to introduce citizen income as a successor to Hartz IV from January 1, 2023 is to be passed by the cabinet this Wednesday.

According to Heil’s plans, the standard rate of the new citizens’ income should be 502 euros per month for single adults. This is intended to increase the previous Hartz IV rate by more than 50 euros from January 1, 2023.

Source: Stern

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