Discussions surrounding potential reforms to Germany’s citizen’s allowance (Bürgergeld) have intensified, sparking a response from the German Trade Union Confederation (DGB). Following statements by Chancellor Friedrich Merz (CDU) regarding possible adjustments to the allowance, the DGB has emphasized the urgent need for increased investment in housing construction and cautioned against benefit reductions.
Anja Piel, a DGB board member, stated that capping or standardizing housing costs within the Bürgergeld system necessitates a clear strategy to address the existing shortage of affordable housing. She warned that leaving individuals with high rental expenses to navigate the situation alone, potentially leading to an erosion of the constitutionally protected minimum standard of living, could result in homelessness and increased poverty.
Piel advocated for a substantial increase in affordable housing options, legally capped rents and a greater availability of social housing units. She firmly opposed benefit cuts, asserting that the proposal lacks a viable connection to the realities faced by those seeking employment while grappling with the challenges of finding suitable and affordable accommodation.
Chancellor Merz previously suggested potential adjustments to Bürgergeld recipients’ allowances in an interview with ARD, including the possibility of limiting housing costs and re-evaluating allowable dwelling sizes. His remarks prompted the DGB’s vocal rebuttal, highlighting the interconnectedness of social welfare, housing affordability and employment prospects.
