Tougher sanctions, new nameBlack and red are putting an end to citizens’ money today
17.12.2025, 07:00 Clock
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Shortly before the end of the year, Black-Red will complete one of the central projects: The cabinet will today decide on the reform of citizens’ money. Recipients who don’t participate will have bigger problems in the future. The name of the state service is also new.
Around three years after the start of the citizen’s benefit reform, the coalition wants to tighten the rules and delete the name again. The Federal Cabinet wants to give the green light today for a corresponding bill from Labor Minister Bärbel Bas. Almost at the last minute, the government agreed on precise wording for a complete abolition of state aid. Previously, the Ministry of Economic Affairs under CDU politician Katherina Reiche and the CSU-led interior department of Alexander Dobrindt had initially not released the draft to the cabinet last week.
Citizens’ allowance sanctions are already possible today if unemployed people do not attend appointments at the job center, reasonable job offers or further training. Today levels of 10, 20 or 30 percent apply. With the now finalized solution, the possible steps for reducing benefits are redefined.
If, for example, an unemployed person does not submit any applications in the future or rejects a remedial course, the new basic security benefit should be immediately reduced by 30 percent for three months – around 150 euros per month. The following applies to missed appointments: The 30 percent reduction applies for one month if there are two missed appointments. A complete cancellation should follow in the event of three failures. Those affected are then considered unreachable. There is also a risk of losing coverage of housing costs.
SPD base resents reform
The job center should have to check the case beforehand. First by letter with the option to reply. The government has now renegotiated the wording that the authority must give those affected the opportunity to be heard in person – for example through a telephone call or a visit.
But what if someone can’t be reached? Or wants to be achieved. Should this allow him to avoid the sanction? That was the economics minister’s concern. The wording now found should make it clear that the personal hearing does not necessarily have to have taken place: those affected should not be able to prevent the withdrawal of benefits by hiding. In cases of hardship, mentally ill people or other important reasons, the rule on refusing an appointment should not apply.
Partly because of concerns about an increase in social hardship and even homelessness among those affected, parts of the SPD base want to stop the reform through a member petition.
Of the 5.5 million people entitled to benefits, the sanctions only affect a fraction. Last year there were an average of fewer than 30,000 such cuts per month. The Federal Constitutional Court had already set limits on the sanctions in 2019: At that time, it prohibited possible reductions in salaries of 60 percent for the second breach of duty per year as unreasonable. 30 percent less was allowed. As a result, the sanctions were temporarily suspended completely.
In the future, the state should also take tougher action when it comes to the assets of those affected. The draft law provides for the abolition of a fixed waiting period for the preservation of assets. Priority should be given to using one’s own income and assets before basic security is provided. In the future, the amount of protected assets will depend on age. Accommodation costs should be recognized to a small extent.
CDA happy, Left foaming at the bit
The bill is not intended to save much: in 2026, the federal government, states, municipalities and the Federal Employment Agency should save a total of 86 million euros, then 70 million, but in the following years even 11 and 9 million more will be incurred. With the cabinet decision, the legislative process should now continue in the Bundestag and Bundesrat.
The workers’ wing of the CDU welcomed the compromise formula that had now been found. CDA boss Dennis Radtke told the “Rheinische Post”: “It’s good that the months-long struggle has now come to an end. The cabinet decision on the new basic security opens an important chapter in social policy – and the chapter on citizens’ money ends.”
Radtke continued: “I welcome the fact that the reform now communicates clearly: basic security is help in times of need, not an unconditional basic income.” He added: “At the same time, it remains our claim that the welfare state does not let anyone down. People with mental illnesses or other significant barriers to placement need special support – for them, basic security continues to be the state’s last resort. This must not be questioned or reduced.”
Sharp criticism, however, came from the left. Their party leader Ines Schwerdtner told the “Rheinische Post”: “We reject this reform because it cuts costs for those who have nothing anyway.” She further criticized: “Just because there are a few objectors, you can’t put millions of those affected under general suspicion. That’s shabby.” Schwerdtner added: “If you really want to get people out of receiving citizens’ benefit, then you have to increase the minimum wage significantly so that low-wage workers no longer have to increase it.”
