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Thursday, December 8, 2022

Citizens’ allowance can come into force: From January 1st, 502 euros will flow

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The right balance between support and demands was debated for weeks. The resolutions of the Bundestag and Bundesrat set the final point. Millions of people in need will have more basic security and new rules in 2023.

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Citizens’ income will be introduced in Germany in the coming year. After the Bundestag, the Bundesrat also approved the social reform on Friday. It is a central project of the traffic light coalition and is intended to replace the previous Hartz IV system.

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On January 1st, basic security payments will increase by more than 50 euros. Single people will receive 502 euros in the future. Significant parts of the reform will come into force on July 1st. The job centers should be able to take better care of the unemployed. The placement in permanent work instead of simple helper jobs should be better than before.

More training and retraining

To this end, those affected should be given further qualifications to a greater extent or begin training or retraining. Many so-called instructions on legal consequences, which Post from the job center has so far acted as a deterrent for many, are to be deleted. In addition, the recipients of basic security will be able to earn more in future – for example with a mini-job.

The resolutions were preceded by a mediation process between the Bundestag and Bundesrat. The Union had rejected the original plans of the traffic light coalition. The CDU and CSU complained that the unemployed were not encouraged enough to participate. The Union no longer saw the balance between funding and demanding. In the Federal Council, the citizens’ income fell through first.

Under pressure from the Union, the possible sanctions for breaches of duty were tightened, contrary to the original draft by Labor Minister Hubertus Heil (SPD). As early as January, such reductions in citizen income are staggered and can amount to a maximum of 30 percent if, contrary to the agreements, the unemployed do not apply for a job or take part in a training measure, for example.

The CDU/CSU initially blocked citizens’ income

Those affected may also keep a little less money they have saved than initially planned. This so-called protective assets amount to 40,000 euros in a “waiting period” of one year. Other people in a so-called community of needs may each keep 15,000 euros. Retirement provision and housing initially remain largely untouched.

In the Bundestag, 557 MPs voted for the changes that the Mediation Committee of the Bundestag and Bundestag had approved. An informal round of the traffic light coalition and the Union had negotiated the compromise. The AfD therefore criticized the procedure as unconstitutional. Finally, the citizen’s allowance was given the green light in the Bundesrat.

Source: Stern

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