Germany German government decides to end the citizen's allowance
The German government has decided to end the basic income support for people capable of working in its current form.
17.12.2025, 13:52
SDA
Chancellor Friedrich Merz's cabinet gave the go-ahead for a bill drafted by Social Democrat Labor Minister Bärbel Bas, thereby approving the new basic income support.
The approximately 5.5 million recipients of basic income support will thus be subject to significantly stricter rules. The cabinet's decision means that the legislative process in the Bundestag - the German parliament - and the Bundesrat - the chamber of the federal states - will continue. There is major resistance to the reform plans among the Social Democratic SPD - the coalition partner of Merz's Christian Democratic Union (CDU and CSU).
Until recently, details of the planned complete abolition of benefits were controversial within the government. This is to be possible if recipients of state benefits cannot be reached: If they miss three invitations to appointments, the job centers are to stop making transfers. There is also the threat of losing the assumption of housing costs.
However, according to the plans, the authorities must give those affected the opportunity to be heard in person - for example by a telephone call or a visit. Mentally ill people are to be protected from the loss of benefits.
Tougher approach
In future, the state is also to take tougher action when it comes to the assets of those affected. The draft bill provides for the abolition of a fixed waiting period for sparing assets. Priority is to be given to using one's own income and assets before basic income support is paid. In future, the amount of protected assets will depend on age. Accommodation costs are to be recognized to a lesser extent.
The primary goal of the job centers should be job placement. If further training appears more promising, this should continue to be given preference. Offers to those affected should be compiled in a joint cooperation plan.
Minor savings
The major savings originally hoped for by the CDU/CSU in particular are not expected. In 2026, the federal government, federal states, local authorities and the Federal Employment Agency are expected to save a total of 86 million euros (around 80 million Swiss francs), then 70 million. On the other hand, 11 million and 9 million more respectively are to be incurred in subsequent years.
