From July 1st, Bürgergeld is no more. Germany is replacing this long-term unemployment benefit with a new version called ‘Basic Security Allowance’. Here’s what you need to know.
Bürgergeld or Citizens’ Allowance was introduced in Germany in 2023 to replace the previous benefit known as Hartz IV (officially Arbeitslosengeld II). But the system is about to see another revamp as Bürgergeld is consigned to history.
From July, people in Germany who are long-term unemployed will receive Grundsicherungsgeld (‘Basic Income Support’ or ‘Basic Security Allowance’).
What is Germany’s long-term unemployment benefit?
Jobseekers who are not entitled to Arbeitslosengeld I, as well as people whose wages are too low to cover their living costs, may qualify for the benefit. Some children and young people are also eligible.
A single adult typically receives a flat-rate payment of €563 per month as well as coverage for housing and heating costs, plus enrolment in health and long-term care insurance.
As of the start of this year, roughly 5.3 million people were receiving Bürgergeld.
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The Bundestag passed the latest reform on March 5th 2026, with the Bundesrat later approving it.
On July 1st, the 13th Amendment to the Second Social Code comes into force with the arrival of Grundsicherungsgeld.
More sanctions on recipients
As part of the changes, sanctions on jobseekers are being tightened.
If appointments are missed, benefits can be cut by 30 percent instead of the previous 10 percent.
Benefits may also be withdrawn entirely in some cases. Germany’s Employment Agency (Agentur für Arbeit) explains that “missing three consecutive appointments without justification can result in the loss of entitlement to benefits altogether”.
The priority is getting people back into employment. If a job is available and considered reasonable, clients must accept it. “Failure to do so may result in a reduction of benefits,” the Employment Agency says.
According to a report by broadcaster BR24, officials at Nuremberg Job Centre say benefits may also be cut off in cases of “deliberate and demonstrable refusal to work”.
However, the Job Centre stressed that such a decision is always made on a case-by-case basis and is subject to strict legal requirements.
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Savings less protected
The amount of money that people on this benefit receive is not changing at the moment.
However, there are changes concerning assets. The previous grace period (Karenzzeit), during which higher levels of savings were protected, is being abolished.
Instead, the amount of savings recipients can keep before they are expected to use their own money to support themselves depends on their age.
Previously, the first member of a household could keep up to €40,000 in protected assets.
Under the new system, the allowance depends on age. Recipients up to the age of 30 can have €5,000 in protected assets and those aged 31-40 can have €10,000.
People aged 41-50 can have €12,500 in protected assets and those aged over 51 can have €20,000.
The Agentur für Arbeit says that certain items – such as a family car – still don’t count towards assets.
Housing costs
Under the reform, coverage for housing will be subject to a maximum limit.
During the first year of receiving benefits, financial housing coverage will cover up to one and a half times the local standard for reasonable housing costs.
Exceptions to this limit may be made in some cases.
Parents may be back to work sooner
One change affects parents of young children.
Previously, many parents were not expected to seek work until their child reached the age of three.
Under the new rules, employment or participation in integration and language courses may be expected once a child reaches 14 months, provided childcare is available.
Greater focus on health
The Employment Agency adds that health conditions will receive more consideration during employment counselling.
That means people receiving the benefit may be referred to rehabilitation services or preventive healthcare programmes earlier than had been the case previously.
The aim is to improve people’s overall health so they can eventually return to and remain in the labour market.
Do sanctions work at getting people into work?
There are mixed views across Germany on introducing tougher penalties for jobseekers.
Renata Häublein, head of the Nuremberg Job Centre, told German broadcaster BR24 that the tougher sanctions could have a preventative effect. She said they send a clear message, particularly regarding the importance of keeping appointments.
Last year, there were 3,500 cases of benefit reductions in the city of Nuremberg. “We believe this figure will fall,” said Häublein.
However, Ramos Lobato, researcher at the Institute for Employment Research (IAB) believes the impact of total sanctions is overestimated. “I wouldn’t expect this to make a significant contribution to labour market integration or to cost savings at this stage,” said Lobato.
READ ALSO: Who will be affected by Germany’s Bürgergeld reform?
Do recipients need to do anything?
No. Anyone already receiving Bürgergeld does not need to submit a new application.
Existing claims will automatically transfer to the new system, provided recipients continue to meet the eligibility criteria. As mentioned, monthly payment amounts remain unchanged.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: thelocal.de
