More money for millions of people in need: Citizens’ income is to be noticeably increased in the coming year. Around 60 euros more for single people are in prospect.
The more than five million recipients of citizen benefits are to receive noticeably higher benefits in the coming year. From the beginning of 2024, single people should receive 563 euros per month instead of 502 euros today. This was announced by Federal Social Minister Hubertus Heil in Berlin. He spoke of a significant step. Overall, it is an increase of a good twelve percent, said the SPD politician. “Especially in times of crisis and in times of crisis and upheaval, you have to be able to rely on the welfare state.”
With the citizen income reform that came into force at the beginning of the year, the rates should be adjusted to inflation more quickly than in the past. For young people from the age of 15 to under 18 years, 471 instead of 420 euros will flow in the future. For children from the beginning of the seventh to the completion of the 14th year, 390 instead of 348 euros are paid. For children up to the age of six, 357 instead of 318 euros should flow.
Replaced Hartz IV in January
5.5 million people are currently receiving citizen benefits, including 1.68 million unemployed. In January, citizen income as the central social reform of the traffic light government replaced Hartz IV in its earlier form. The standard rates had already risen by around 50 euros at the beginning of the year. As a result of the reform, the level of benefits will be adjusted to price developments more quickly than before. Previously, inflation had only been taken into account with a very long time lag. Now the level of wages and inflation is taken into account for the standard rates for the following year up to the second quarter of the current year.
“Good signal”
The Social Association Germany (SoVD) called the standard rate adjustment “a good signal”, as the association’s chairman Michaela Engelmeier told the dpa news agency. She pointed out that the increase will also help hundreds of thousands more people. Because the rates for basic security in old age and for reduced earning capacity also increase accordingly.
The Paritätische Gesamtverband had repeatedly criticized the citizens’ allowance as insufficient. According to the association’s poverty report, the rate for citizen’s income, basic old-age security and reduced earning capacity will not cover the minimum requirement in 2023 either. For this he would have to be 725 euros, as the association says, citing its own calculations.
Citizens’ income was introduced after months of negotiations in the traffic light coalition. A twelve-month waiting period has been in effect since the beginning of the year: During this waiting period, the previous costs of the apartment will be covered and assets will only be taken into account if they exceed certain thresholds. In the meantime, tax exemptions for employed persons have also been improved. The main goals of the citizen income reform are to strengthen the individual care of those affected in the job center, as well as more further training and qualification for jobs.