The German government is preparing reforms to the Citizen’s Benefit (Bürgergeld) system, aiming to reduce misuse and encourage more people to enter the labor market.

Under the proposals, missing two consecutive appointments at the job center without valid reason will result in a 30% cut to the basic allowance. A third violation could lead to a temporary suspension of payments, with rent transferred directly to landlords.

The grace period for protected savings will also be abolished, meaning assets will be counted from day one. Children and teenagers will remain exempt from any cuts.

In 2024, Citizen’s Benefit cost the state 51.7 billion euros. The government hopes the reforms will save up to 850 million euros annually.

Sources - Agencies