Citizens’ money is probably the biggest social reform of the traffic light. But many consider it too generous. Less than two years after its launch, citizens’ money is being tightened.
The federal government is tightening the rules for citizens’ benefit recipients. If they refuse to work, they will soon face higher penalties. The federal cabinet introduced a corresponding draft law. Anyone who refuses reasonable work, training or measures without a good reason will in future immediately have to expect a more significant reduction in basic income of 30 percent for three months. Anyone who fails to attend appointments at the job center without a reason will receive a reduction in benefits of 30 percent instead of the current 10 percent for one month.
Labor Minister Hubertus Heil (SPD) said that anyone who doesn’t go along or cheats through undeclared work “must expect harsher consequences.” The changes are to be decided by the Bundestag in the usual legislative process and come into force at the turn of the year.
Heil: “Mediation remains the core”
Citizens’ benefit recipients who have done undeclared work should also have their benefits reduced. The job centers should be obliged to report suspected illegal work to the customs administration. Heil’s draft – a so-called formulation aid – is intended to implement the labor market policy measures of the coalition’s planned growth initiative.
The goal: “More commitment, more labor market integration and more fairness in the welfare state,” says Heil’s ministry. “Placement and qualification remain the core of citizens’ money in order to get people into work,” emphasized Heil. When sharpening, “valuable tips from practice” are implemented.
Assets will only be protected for six months
In the future, additional steps will be taken to ensure that those with greater wealth can generally use it for their own living expenses. The waiting period during which assets are not affected should therefore be shortened from twelve to six months. Start-up financing is also intended to support long-term unemployed people in taking up employment subject to social insurance contributions if they manage to permanently stop receiving citizens’ benefit by taking up employment.
Up to three hours of commuting is reasonable
In order not to rule out some job offers from the outset, jobs that are further away should also be considered reasonable. If you work up to six hours a day, 2.5 hours of commuting time should generally be reasonable and if you work more than six hours, up to three hours of commuting time should be acceptable. Exceptions should apply for carers and educators.
Trials at another employer before a desired job change should also be made more possible. A new funding instrument is to be introduced for refugees with the integration internship.
Many Ukrainians still don’t speak German
In the future, employers will be able to receive a subsidy if they offer refugees employment opportunities if they find it difficult to find employment and then release them to take part in a professional language course. The main reason for this is the many Ukrainians on citizen’s benefit. The “Job Turbo” is intended to speed up the recruitment of refugees. But many employers expect those affected to have at least a basic knowledge of German.
Only on Monday, Chancellor Olaf Scholz (SPD) announced that the number of refugees from Ukraine with jobs in Germany had grown to 266,000. That is an increase of 71,000 by July compared to the previous year. There are 704,000 people from the eight most important countries of asylum origin in employment, which also happens to be an increase of 71,000 compared to the previous year.
Scholz said: “The job turbo has contributed to this increase since October 2023.” He considered Heil’s offensive a success. At the same time, the government and other parties involved could do even better, warned the Chancellor. According to the Federal Employment Agency’s table, almost 65 percent of Ukrainians received citizen’s benefit last year.
Approval even without a stamp
Hiring refugees with tolerated status should also be made easier legally: an employment permit from the often overburdened immigration authorities should, under certain circumstances, be considered approved even without a stamp.
Q&A about citizens’ money
Source: Stern
I have been working in the news industry for over 6 years, first as a reporter and now as an editor. I have covered politics extensively, and my work has appeared in major newspapers and online news outlets around the world. In addition to my writing, I also contribute regularly to 24 Hours World.
