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FDP proposes cut to citizen income as criticism continues

Arthur Franke by Arthur Franke
August 13, 2024
in Politics
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The Free Democratic Party (FDP) of Germany is now pushing to lower the citizen income for recipients, following ongoing debates about stricter sanctions for those who refuse work. FDP faction leader Christian Dürr suggests a reduction of up to 20 euros, while the Ministry of Social Affairs cites legal constraints.

The citizen income program, introduced less than 600 days ago, remains a frequent topic in the media. Recently, the Union intensified its criticism of the successor to Hartz IV, calling for harsher sanctions against work refusals. The FDP also supported this view, and the SPD-led Ministry of Labor announced changes, describing them as a “reasonable adjustment.” Proposed changes include stricter requirements for receiving citizen income.

FDP proposes cut to citizen income as criticism continues
In Germany, the citizen’s income (Bürgergeld) is provided to cover basic needs such as food, clothing, and electricity.

FDP’s proposal to cut benefits

Christian Dürr believes that the current citizen income of 563 euros per month for individuals is too high given the inflation rate. He argues that it is “currently 14 to 20 euros too high” and suggests a downward adjustment. Dürr claims this would not only save taxpayers up to 850 million euros but also increase work incentives. FDP General Secretary Bijan Djir-Sarai supported this stance, advocating for a policy shift to correct “wrong incentives” and ensure that those working end up with more money.

SPD’s reaction

The SPD reacted sharply to the FDP’s proposal. Martin Rosemann, SPD’s spokesperson on labor market policy, criticized the idea as unrealistic and unhelpful. He urged the FDP to fulfill its responsibilities as part of the coalition government, emphasizing the need for constructive contributions rather than destabilizing ideas.

The Ministry of Labor and Social Affairs pointed out that any adjustments to citizen income must adhere to legal requirements. A spokesperson indicated that adjustments follow legal guidelines and that there is no flexibility for cuts due to a “legal protection rule” for recipients. It is anticipated that there will be no increase in citizen income in the coming year due to falling inflation rates.

Recent increases and future expectations

Citizen income increased by twelve percent at the beginning of 2024, marking a significant rise compared to previous years. Single recipients now receive 563 euros per month, an increase of 61 euros. The standard rate is adjusted annually to reflect price and wage changes, including inflation. Social Minister Hubertus Heil noted that if inflation significantly decreases, the next adjustment may be minimal. Data from the Federal Statistical Office, due in summer, will inform this decision.

Currently, it seems likely that citizen income recipients will face a freeze in 2025. A Ministry spokesperson suggested that, given the recent drop in price increase rates, it is possible that there will be no increase on January 1, 2025. Finance Minister and FDP leader Christian Lindner echoed this expectation, asserting that there would be no increase in 2025 while working citizens receive tax relief. This, he argues, will widen the gap between working and non-working individuals.

Debate over fairness and work refusal

The citizen income program is designed to ensure a dignified minimum living standard for those unable to support themselves through income or assets. Recent discussions have also focused on handling work refusals—those receiving state support while not seeking employment. Despite perceptions, only about 16,000 recipients fall into this category. SPD leader Lars Klingbeil acknowledged the public’s sense of injustice regarding those who exploit state support without contributing, emphasizing that “there is no right to laziness.”

This ongoing debate highlights the complexities and challenges surrounding citizen income policy and its impact on both recipients and taxpayers.

Tags: BürgergeldCitizens' IncomeFDP

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