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Wednesday, February 1, 2023

Social reform: basic income comes into effect at the turn of the year

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After a long discussion, the new citizens’ allowance is finally here and will come into force from today. There are some changes to the previous Hartz IV model.

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On New Year’s Day, the new citizen’s income comes into effect. The standard rates for the needy increase by around 50 euros.

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For single and single parents entitled to benefits, there is 502 euros per month from January 1st, for two adult partners in a so-called community of needs 451 euros each. For young people between the ages of 15 and 18, 420 euros flow. Children from the age of 7 to the age of 14 receive 348 euros. For children up to the age of 6, 318 euros are paid.

In a waiting period of 12 months, the suitability of the apartment is not checked. Until then, the actual costs of the apartment will be covered in full. In the first 12 months, assets of up to 40,000 euros remain protected for the first person in the benefit community. For each additional person, this allowance increases by 15,000 euros.

If appointments are missed without an important reason, the standard requirement can be reduced by 10 percent for one month. If, contrary to agreement, someone does not apply for a job or does not take part in a course, the standard requirement can initially be reduced by ten percent for one month. In the event of a second breach of duty, it should be possible to reduce it by 20 percent for two months and in the last stage by 30 percent for three months.

From the middle of the year, a cooperation plan is to replace the previous integration agreement. This plan should be worked out in understandable German by job center employees and those receiving citizenship benefit and should serve as a roadmap for finding regular work.

Source: Stern

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