Citizens' allowance: An overview of the most important innovations

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Sign of the Federal Employment Agency: »Overcome Hartz IV«

Photo: Sonja Wurtscheid/DPA

The heated debate already showed that a major change is at stake: the new citizens' income.

For some, it's way too low.

Others fear a demotivating effect on those who currently work for little wages.

On January 1st, citizen income is to replace the current Hartz IV system.

A standard rate of 502 euros per month is planned for single adults.

The Hartz IV rate is currently 449 euros per month.

In the course of the day, the federal cabinet now wants to pave the way for the central social reform of the traffic light coalition.

The ministerial round wants to pass a draft law by Federal Labor Minister Hubertus Heil.

The Bundestag and Bundesrat then have to deal with it.

An overview of the most important changes - and the arguments of the supporters and the critics:

The rule sets

The standard rates should increase by around 50 euros compared to the current Hartz IV system.

A standard rate of 502 euros per month for single adults is then planned for January 1st.

The Hartz IV rate is currently 449 euros per month.

sanctions

According to the plans, those who do not cooperate with the job center need fear fewer sanctions.

Such punitive measures had already been suspended by law in advance.

Now the possibilities for reducing benefits are to be severely restricted in general.

In the future, only limited reductions in benefits should be possible in the first six months if someone has missed appointments at the job center.

In the case of so-called breaches of duty, on the other hand, if reasonable work has not been accepted, there should be no more sanctions in the first six months.

Labor Minister Heil defended the citizen's allowance against the accusation that it was paid largely without the recipient's own commitment.

»The issue of duties to cooperate remains.

But we concentrate on where it is necessary, "said the SPD politician on Deutschlandfunk on Wednesday.

»And I'll say it clearly: People who chronically don't keep appointments (at the job center) can also expect legal consequences in the new system.

But the spirit of the new system is not one of distrust, but of encouragement, of empowerment.”

incentives

"Instead of demotivating, often counterproductive sanctions, the citizen's income is based on positive incentives," said the Greens parliamentary group Vice President Andreas Audretsch.

»We will overcome Hartz IV with the citizen money«.

A further training bonus of 150 euros is planned.

In interviews, Heil emphasized the importance of such incentives and said that two-thirds of the long-term unemployed had not completed vocational training.

Only through qualification can the path out of need and into work be opened up.

assets

You should be allowed to have assets of up to 60,000 euros for two years – even if you receive citizen income.

In addition, benefit recipients can stay in their apartment during this time, even if it is actually considered too large.

After 24 months of receiving citizenship benefit, assets and the appropriateness of the apartment should be able to be checked.

More assets than before are to remain untouched.

additional earnings

In the future, work should make a bigger difference in citizen income than before, even if the wage is not enough to get out of the basic security benefit.

In concrete terms, 30 percent (instead of the previous 20 percent) should be allowed to be kept from the earnings between 520 and 1000 euros.

Pupils from families with basic income can keep their income from mini-jobs in full – i.e. up to 520 euros per month.

In addition, unlimited income from holiday jobs is not counted towards the citizen's income.

cooperation

It is important to the traffic light coalition that job centers meet those affected “on an equal footing”, as it has already written in its coalition agreement.

To begin with, a cooperation plan should be drawn up.

What does the unemployed person wish for in their further career?

Better than before, these wishes should be taken into account.

Green politician Audretsch draws attention to another planned innovation: "In future, everyone will be written to by the job centers in friendly, clear sentences," he says.

»No complex legal texts, no instructions on legal consequences that are often perceived as threats.«

That's what the critics say

The Union sees a misguided incentive in citizen money.

CSU regional group chief Alexander Dobrindt criticized in the "Augsburger Allgemeine" that the principle of demanding and promoting was further restricted by the citizens' allowance.

"This can lead to the fact that benefit receipt is cemented and demotivation is promoted instead of taking up work," warned Dobrindt.

The socio-political spokesman for the Union faction, Stephan Stracke (CSU), also criticized in the "Rheinische Post": "With the citizen's income, non-work is much more attractive."

Left-wing parliamentary group vice Susanne Ferschl argued quite differently.

Despite some improvements, she called the citizen's income “poverty by law”.

The planned increase only compensates for inflation-related additional costs, she told the "Augsburger Allgemeine".

The standard rate must increase by at least 200 euros plus electricity costs, demanded Ferschl.

The German Children's Fund considers the financial support for children in the new citizen's allowance to be insufficient.

"The sharp rise in inflation and in particular the exploding energy prices" would "completely nullify" financial improvements, explained Federal Managing Director Holger Hofmann.

»So significantly higher investments are needed to effectively lift children out of poverty.«

Labor Minister Heil contradicted critics from both sides.

He said the citizen's allowance would create incentives for the unemployed to take up work.

"There are new incentives in this system to actually find ways out of need," he says in the ARD "Morgenmagazin".

He promised a "less bureaucratic system."

There will be cooperation agreements and also obligations to cooperate, but no longer a large number of notifications.

The spirit of the new system is one of "encouragement and empowerment."

At the same time, Heil contradicted the criticism that the increase in standard rates was too small.

"That's still a very large increase of 52 euros.

You also have to know that the heating costs are also covered for recipients of basic security. « But it is not an entry into an unconditional basic income.

"That's nonsense," the minister said on Deutschlandfunk.

mmq/dpa