Status: 04/10/2023 1:21 p.m
At the turn of the year, unemployment benefit II – also known as Hartz IV – was replaced by citizen benefit. More money, more funding, fewer sanctions, that was the plan. How well works the?
“Well meant is not well done – the citizen’s income is a bad compromise.” Stefan Wagner sounds quite disillusioned when asked for his assessment of the successor model to the Hartz IV benefits. He was himself a recipient of unemployment benefit II, now lives on a small pension and volunteers at the social contact point in Speyer. This is a contact point, explains Wagner, for “people who are not on the sunny side of life”: homeless people, people affected by poverty, most of whom have been receiving citizen benefits since the beginning of the year.
At first, according to Wagner’s observation, many of his guests – as he calls the people who seek help from him and his team – were suspicious and insecure. “It’s an incredibly complex performance system, and hardly anyone can see through it,” says Wagner. “Sponsored assets, allowances, what has changed, what deadlines do you have to meet, what am I entitled to?”
More money from the office is not enough for everything
With the changeover from unemployment benefit II and social benefit to citizen benefit, the standard rates have risen: a single person now gets 502 euros a month. “But the 53 euros more really don’t rock it,” Wagner dismisses. “They are completely eaten up by the increased food prices and electricity costs alone.”
The big social organizations see it similarly. Ulrich Schneider, managing director of the Paritätischer Wohlfahrtsverband, says that the benefits are not enough in every way and ignore the reality of people’s lives. He demands that the standard rate should be 725 euros. 23.76 billion euros are already being budgeted for citizen income in 2023, around 2.4 billion more than for ALG II in the previous year.
Nationwide, an estimated 3.9 million people who are able to work are currently receiving citizen benefits. What is new is that the so-called placement priority has been abolished: the unemployed no longer have to accept every job immediately. Instead, further training and the catching up of professional qualifications are more strongly supported, both financially and in the form of advice.
“That’s really good,” emphasizes volunteer Wagner. He tells of one of his guests: “Previously they would have sent him to the discount store to fill up the shelves, but now he can do his secondary school diploma instead. You can see directly what that does to the people. That gives them back their dignity to a certain extent – and a perspective.” On the other hand, he is critical of the fact that the sanctions have not been completely canceled – contrary to what was originally planned. “People are only cornered when the sword of Damocles is constantly hanging over them,” says Wagner.
Still “Promoting and Demanding”
Because that applies to the citizen’s income as well as before with the ALG II. Rightly so, according to the Employers’ Association (VDA). It is about clear obligations to cooperate and help for self-help in order not to shake trust in the welfare state that provides the services. According to a VDA spokeswoman, it is too early for an interim assessment after three months, especially since some regulations will not come into force until July 1st.
Christian Merkl, economics professor at the University of Erlangen-Nuremberg, believes it would be desirable for full-time employment to become more attractive. So far, however, there is no evidence that the citizen’s income has significantly reduced the incentive to work. The employers’ association emphasizes that the most important thing is to equip the job centers properly, both financially and with staff.
Demand for basic child security
The social association VdK also points this out. VdK President Verena Bentele says: “Many of the regulations at the heart of the citizen income reform will only be implemented in the summer. They should bring more people into work again. However, we fear that the job centers will hardly be able to cope with their scarce human and financial resources.” The job centers are already busy looking after people who receive citizenship benefits. “In order for the job centers to be able to use the good new instruments really successfully from the summer, they have to be better equipped financially and in terms of staff. Otherwise these measures will have no effect.”
Volunteer Wagner can fully agree: “It’s important that we reach people with our offers of help. We want to meet people at eye level – and of course help to get them a living, if possible.” That doesn’t change anything about his demand for a complete recalculation of the rule set. “It has to be based on actual needs,” says Wagner. “And while we’re at it: the basic child security must come. That would really help families who are affected by poverty.”