Child benefit, pension and the new citizens' benefit: what will change for many consumers in 2023
Created: 11/30/2022, 5:00 p.m
By: Anne Hund
Some legislative changes are imminent.
Are you also affected?
Here is an overview of the most important innovations in the coming year.
With the New Year, a number of changes in the law will come into force, which will affect numerous people in Germany, from families to pensioners.
For example, the citizen's income, which is to replace Hartz IV from January 1, is new.
Here is an overview of four important innovations in 2023.
1. Important change in pension from next year
In western Germany, pensions are expected to rise by around 3.5 percent in July 2023, and by a good 4.2 percent in eastern Germany.
With a pension of 1,000 euros, that means an increase of around 35 euros in the west and 42 euros in the east.
There will also be something new in 2023: pension contributions can be fully tax deductible from next year.
"The taxation then only takes place with the payment in old age," said the portal
Nordbayern.de.
The arithmetic variables would be adjusted every year to keep social security stable.
From the coming year, the additional income limit for early retirement is to be lifted, according to the planned amendment to the law.
2. Child benefit will be increased in 2023
Good news for families: Child benefit will increase in the coming year.
© Christin Klose/dpa
From January, millions of families can look forward to more child benefit: In 2023, it will be raised to a uniform amount of 250 euros per month and child.
That means a plus of 31 euros for the first and second child and a plus of 25 euros per month for the third child.
Meanwhile, many single parents are not benefiting from the increase.
3. Housing benefit reform should relieve more households from January
From the coming year, more households in Germany are to be relieved with a state rent subsidy: “Up to 1.4 million more households are to be added to the 600,000 households that have received housing benefit,” reported the German Press Agency (dpa).
The housing benefit should also be increased by an average of 190 euros per month.
"This means that eligible households will receive an average of around 370 euros a month in the future." From January 1, more people should be entitled to housing benefit, but the payment could be delayed until the summer, it said.
4. Citizens' Income
In 2023, the citizen's income is to replace the previous Hartz 4 benefits.
On January 1st, basic security payments will increase by more than 50 euros.
Single people will receive 502 euros in the future.
On July 1, 2023, essential parts of the reform will also come into force: the job centers should be able to take better care of the unemployed.
The placement in permanent work instead of simple helper jobs should be better than before, as reported by dpa.
The so-called protective assets amount to 40,000 euros in a “waiting period” of one year.
Other people in a so-called community of needs may each keep 15,000 euros.
According to dpa, old-age provision and housing will initially remain largely untouched.
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