Reform of citizens' money: municipalities sound the alarm about bureaucratic monsters!

Reform of citizens' money: municipalities sound the alarm about bureaucratic monsters!

As of November 1, 2025, there will be a comprehensive reform of basic security in Germany, which is intended to replace citizens' money. The federal government has set itself the goal of easing the burden on the budget and at the same time creating incentives for increased employment. The reform brings with it some controversial innovations that are met with concerns and harsh criticism in the municipalities. Loud Mercury Many district administrators and mayors fear that the new regulations will lead to a “bureaucratic monster” that could drive up administrative costs enormously.

A central element of the reform is the introduction of a cooperation agreement between benefit recipients and the state. If the agreements are violated, there is a risk of severe cuts of up to 30 percent of benefits. The chairman of the Brandenburg district council, Siegurd Heinze, is critical and describes the entire reform as “pointless and bureaucratic”. Ulli Schäfer, district administrator of Greiz, also doesn't really see a willingness to reform in the project. But not all mayors see the situation as dramatic: Dennis Rehbein, the newly elected mayor of Hagen, recognizes the danger of a wave of lawsuits, but remains optimistic.

Rising costs and possible lawsuits

The federal government estimates that the reform could bring savings of around five billion euros. However, these savings are considered minimal, especially since the total annual cost of citizens' money is around 50 billion euros. Municipalities also fear that the new regulations will not only lead to additional administrative burdens, but could also result in an increase in lawsuits. These legal disputes could place further strain on city budgets.

In addition, there is criticism that the reform is not fair: while the unemployed are subject to stricter sanctions, working people hardly benefit from the innovations. The planned sanctions for multiple rejections of job offers or missing appointments could be loud Time only make the situation worse for many of those affected. In the long term, this could not only make it more difficult to take up work, but also lead to an increase in the number of people receiving basic social security.

The next steps

In order to overcome these challenges, it is essential that job centers are better equipped to ensure effective placement. The focus of the reform is clearly on job placements, not on the qualifications of those affected, which is seen in some cases as a possible turnaround towards a more effective labor market policy. It is also to be hoped that the implementation of the reform will be cleverly designed, as the sanctions are not mandatory and job centers therefore have a certain amount of freedom of action.

The reform therefore has a twofold focus: it is important to reduce costs, but at the same time to promote workplace integration. The coming months will show whether the federal government will be able to take the municipalities' concerns seriously and at the same time initiate effective reform.