The Federal Government has that Reform of citizens’ money and the renaming to basic security was approved. After long negotiations, the cabinet agreed on a corresponding draft law from Federal Labor Minister Bärbel Bas (SPD). The reform aims to increase the pressure on benefit recipients to take up work. In addition, the sanctions for breaches of duty and missed deadlines will be made significantly stricter.
Anyone who skips two appointments at the employment office without an important reason will receive 30 percent less money in the future. If the appointment is missed for the third time, payments will be canceled for the time being and the rent will be transferred directly to the landlord. However, according to the plans, the authorities must give those affected the opportunity to be heard in person – for example through a telephone call or a visit. Mentally ill people should be protected from a loss of benefits.
In addition, the rules for protective assets and housing costs are being tightened. Before someone can receive basic security, their own assets must be used up to certain limits. These amounts are now linked to age and are therefore significantly lower than before, especially for young people. Housing costs will also be examined earlier and more strictly than before to see whether they are classified as appropriate and therefore fully covered by the state.
Long dispute in the coalition
The coalition had discussed the reform intensively in recent months, including in several coalition committees. Most recently, the cabinet decision planned for December 10th was postponed at short notice until this week. Critics of the reform – including from the ranks of the SPD – had doubted that they would agree with it anchored in the Basic Law minimum subsistence level is compatible. The federal government does not expect any significant savings from the changes.
The The previous government had citizens’ money introduced under the leadership of the SPD only three years ago. During the election campaign, the Union promised to abolish the service. Next, the Bundestag and Bundesrat must deal with the proposal. After approval by the Bundestag, the law will then come into force on July 1st next year. However, this is considered questionable. The Federal Employment Agency has asked for a longer lead time for the technical implementation.
“Shameful for a rich country like Germany”
Social organizations also criticize the reform. Diakonie Deutschland warned of tough cuts. Instead of better helping people get back to work, the state is mainly relying on it Sanctions and thereby risk social hardship, said Diakonie President Rüdiger Schuch. Instead of increasing the pressure, the government should equip the job centers so that they can get people into work in the long term through good and effective advice, support and placement.
The Workers’ Welfare Association also criticized the move. “We’ve had enough,” said President Michael Groß. “There has been long enough discussion about how to continue saving on the backs of the poorest people – this debate is shameful for a rich country like Germany,” he added. The debate distracts from the actual problems: In the past five years, food prices have risen by more than 36 percent. However, this increase was not offset for people at the subsistence level.
In November 2025, a good 5.2 million people received it Citizen’s moneyincluding almost 1.4 million children under the age of 15. The federal government spends over 50 billion euros on monthly cash payments of currently up to 563 euros, rent and heating costs as well as support measures and administration.
