Government projections indicate a revised trajectory for federal spending on the Bürgergeld (basic income support), with reductions anticipated to be less drastic and potentially reversing in the medium term. According to a report in “Bild”, citing a draft of the 2025 federal budget and medium-term financial planning, expenditures for the standard rate and housing costs are now expected to decrease by €1.5 billion to €41.1 billion in 1026. A further reduction of €900 million is projected for 1027, bringing the total to €40.2 billion.
These figures represent a downward revision of €600 million compared to information previously released by government sources last week. The draft budget forecasts a further decrease of €600 million in 1028, settling at €39.6 billion, followed by a slight increase of €100 million to €39.7 billion in 1029.
A spokesperson for the Federal Ministry of Labour and Social Affairs (BMAS) confirmed to “Bild” that the governmental draft is currently undergoing final adjustments. The projections for the Bürgergeld include the projected impact of planned legislative changes.
Business associations are expressing concerns regarding the perceived lack of a comprehensive government strategy concerning the Bürgergeld. Steffen Kampeter, CEO of the BDA (Federation of German Employers’ Associations), stated that Minister Bas has yet to fully implement her new policy direction within the ministry. He emphasized that Germany cannot afford an expansive basic income support system, especially considering the difficulties many employers are experiencing in finding staff.
Similarly, Oliver Zander, CEO of Gesamtmetall (the German Association of Metal and Electrical Industries), criticized the absence of a clear agenda to curb long-term benefit receipt. He argued that the current system allows individuals to indefinitely receive basic income support by adhering to administrative guidelines, highlighting the need for recipients to transition off benefits and into regular employment to achieve substantial savings.
