Reduction of aid and Ukrainians are the most affected.
The implementation of the reform plan for the "Bürgergeld" system in Germany has been delayed, despite the repeated promises made by German Chancellor Friedrich Merz during his election campaign. The plan, which aims to tighten laws, impose harsher penalties, and accelerate the integration of the unemployed into the labor market, now faces political and legislative complications that will postpone its implementation until the spring of 2026 at the earliest, according to politician Carsten Linnemann, the general secretary of the CDU, who described the reform as the largest since the "Agenda 2010."
However, the government is moving quickly regarding Ukrainians receiving "Bürgergeld". As part of an urgent decision package, the ruling coalition of CDU and SPD aims to stop this support for Ukrainian refugees as soon as possible and transition them to the "Asylum Seekers Law" system. The decision may take effect retroactively from April 2025, meaning a reduction in monthly assistance by 122 euros per person. Individuals currently receive 563 euros monthly from "Bürgergeld", but the amount will decrease to 441 euros under the asylum law.
Moreover, it is expected that this money will be paid in the future via an electronic payment card at the national level in Germany. The amounts will also decrease further for those living in communal housing or with partners in shared accommodation, while the state will continue to cover rental costs.
The Ministry of Labor confirmed that the precise details of the legal transition have not yet been finalized, and the current legal status will remain in effect until the legislative process is completed. In workplaces such as those in Berlin and Brandenburg, there is still a state of anticipation, especially due to objections to the retroactive application of the decision, which may require complex financial recalculations without actual savings in expenses.
As for the comprehensive reform of the "Bürgergeld" system, it is still under study, and parliamentary discussions about it may begin before or after the summer break. The new government coalition wants to transform the system into a "new basic insurance for the unemployed," based on stricter requirements and conditions.
The general trend indicates a reduction in support and increased pressure on the unemployed. Authorities can currently suspend support entirely for two months if a person does not comply with work requirements, while still covering rent and heating. CDU wants to tighten this further, considering that those who refuse repeated job offers do not deserve financial assistance, and their "Bürgergeld" should be completely withdrawn. This political shift reflects a significant change in German labor market policy: from welfare to more commitment and discipline.