Citizens' benefit reform: Millions are happy about new opportunities and criticism!

Citizens' benefit reform: Millions are happy about new opportunities and criticism!

In Germany there have been discussions about social security systems for the unemployed for some time. The focus is on citizens' money, which was introduced in January 2023 as a successor to Hartz IV and is now intended to ensure financial support for the long-term unemployed. But what is the reality on site? Loud DW Around 5.5 million people across Germany receive citizen's benefit, including a large number of long-term unemployed people.

Over 800,000 employable citizens' benefit recipients are in work, but their earnings are not enough to cover their living expenses. A person who has been unemployed since 2009 talks about his difficulties. “I'm struggling with health problems and my budget just isn't enough,” reports Paul Sonntag. He sees the increase in the standard rate from 449 to 502 euros as inadequate, as do many others who are in his situation. Ulrich Schneider from the Paritätischer Wohlfahrtsverband even calls for a standard rate of 725 euros for a dignified life.

Long-term unemployment in view

Statistics show that around 80 percent of the long-term unemployed do not have a school leaving certificate or training. Many also struggle with personal challenges such as language barriers and health problems. This makes it significantly more difficult to re-enter the job market. This constellation means that over two million people have been dependent on support for more than four years, while the proportion of those receiving citizen's benefit with foreign nationality has risen to 52 percent. This is reflected in the current figures Employment agency statistics.

A reform of citizens' money, which is supported by the governing parties CDU/CSU and SPD, is set to come into force at the beginning of July 2026. This reform provides for stricter regulations, including reductions in money if obligations are breached. CDU chairman Friedrich Merz speaks of a savings potential of five billion euros through the upcoming changes. Experts from the CDU Economic Council are even optimistic and estimate that 30 billion euros could be saved if a quarter of employable citizens' benefit recipients can be brought into regular work.

Promote social participation

Citizens' money aims to improve social participation and employability. Some initiatives, such as the “Campus: Health & Prospects” program run by Arbeiterwohlfahrt Köln, show positive approaches to supporting the long-term unemployed. Nevertheless, the question remains as to whether the structural improvements that are intended to accompany citizens' money can actually improve the living situations of those affected.

The discussion about citizens' benefit and the future of the long-term unemployed is complicated. While some benefits are seen, many people like Paul Sonntag still feel that little has changed in their difficult situation. Politicians are required to develop creative solutions and break down barriers so that integration into the labor market is successful and people gain real prospects.