Social: Citizens’ income increases significantly to 563 euros in 2024

The more than 5 million recipients of citizen’s allowance are to receive noticeably higher benefits in the coming year. From the beginning of 2024, single people should receive 563 euros per month instead of 502 euros today. This was announced by Federal Minister of Social Affairs Hubertus Heil on Tuesday in Berlin. He spoke of a significant step. Overall, it is an increase of a good 12 percent, said the SPD politician. “Especially in times of crisis and in times of crisis and upheaval, you have to be able to rely on the welfare state.” According to Heil, the increase will have an impact on the federal budget of 4.3 billion euros.

With the citizen income reform that came into force at the beginning of the year, the rates should be adjusted to inflation more quickly than in the past. For young people from the age of 15 to under 18 years, 471 instead of 420 euros will flow in the future. For children from the beginning of the seventh to the completion of the 14th year, 390 instead of 348 euros are paid. For children up to the age of six, 357 instead of 318 euros should flow.

Central social reform of the traffic light

5.5 million people in need are currently receiving citizenship benefits, including 1.68 million unemployed. In January, citizen income as the central social reform of the traffic light government replaced Hartz IV in its earlier form. The standard rates had already risen by around 50 euros at the beginning of the year. As a result of the reform, the level of benefits will be adjusted to price developments more quickly than before. Previously, inflation had only been taken into account with a very time lag. Now the level of wages and inflation is taken into account for the standard rates for the following year up to the second quarter of the current year.

The Social Association Germany (SoVD) called the standard rate adjustment “a good signal”, as the association’s chairwoman Michaela Engelmeier told the German Press Agency in Berlin. She pointed out that the increase will also help hundreds of thousands more people. Because the rates for basic security in old age and for reduced earning capacity also increase accordingly.

The Paritätische Gesamtverband had repeatedly criticized the citizens’ allowance as insufficient. According to the association’s poverty report, the rate of citizen income, basic old-age security and reduced earning capacity will not cover the minimum requirement in 2023 either. For this he would have to be 725 euros, as the association says, citing its own calculations.

After long negotiations

Citizens’ income was introduced after months of negotiations in the traffic light coalition. A 12-month waiting period has been in effect since the beginning of the year: During this waiting period, the previous costs of the apartment will be covered and assets will only be taken into account if they exceed certain thresholds. In the meantime, tax exemptions for employed persons have also been improved. The main goals of the reform of citizen income are to strengthen the individual care of those affected in the job center – and more training and qualification for jobs.

In July, the inflation rate in Germany was 6.2 percent compared to the same month last year, and in June it was 6.4 percent. SoVD boss Engelmeier said that in view of the development, politicians should not lose sight of people with an income just above the basic security level. They suffered “extremely” from the price explosion.

In the previous Hartz IV system, the basic security had only increased by meager amounts over many years. In 2022, for example, there was an increase of 3 euros to 449 euros for single adults – the German children’s charity, for example, criticized this as “miserable” at the time. In 2021 the plus was 14 euros and in the years before that it was 8 euros twice.