The cost of Germany’s citizen’s allowance (Bürgergeld) has risen to €47 billion in 2024, prompting calls for reform and raising concerns about future policy implications. Marc Biadacz, parliamentary spokesperson for the CDU/CSU faction, described the escalating expenditure as a “wake-up call” emphasizing the increased pressure for systemic change. He urged the Federal Ministry of Labour to “deliver” a revised approach.
The current system is seen by some as incentivizing dependency rather than promoting employment and individual responsibility. The rules governing the citizen’s allowance saw significant increases in 2023 and 2024, disproportionately reflecting inflationary pressures, with a planned standstill in 2025.
Calls for reform center on the coalition agreement’s pledge for a new basic security system that prioritizes work, strengthens placement services and incorporates clear requirements for recipient participation.
Enzo Weber of the Institute for Employment Research (IAB) advocates for a revised mechanism to counteract inflation effectively without creating instability. He also cautioned against plans by the coalition to provide refugees from Ukraine arriving after April 2025 with lower levels of benefits typically reserved for asylum seekers, rather than the Bürgergeld. Weber warned that removing these individuals from the system would eliminate access to vital support services, including counseling, job placement and skills development, potentially leading to fewer jobs and increased overall costs.
