Heil announces a “fundamental change of course in social policy”
Labor Minister Hubertus Heil (SPD) has announced the increase in the minimum wage as the first reform
Source: REUTERS
In a major reform, Federal Labor Minister Hubertus Heil (SPD) is planning to turn the social system upside down. He also hopes that the changes will improve the way people deal with those affected, who are to be lifted out of unemployment in the long term.
B.Unemployment Minister Hubertus Heil (SPD) announces the planned restructuring of the Hartz IV system as a comprehensive reform. “With the new citizens’ money we are planning a fundamental change of course in social policy, a major social reform”, he said to the “Rheinische Post“. “The system is being rebuilt, reducing the bureaucracy and focusing more on getting people out of unemployment in the long term.”
The conversion of Hartz IV to a so-called citizen’s money is provided for in the traffic light coalition agreement. Heil explained how he imagines how to deal with those affected in the future: “We say: If you slip into the citizens’ allowance, we will support you with all means to get out of unemployment in the long term, and you don’t have to worry anymore that you lose your apartment. “
It is about people being able to concentrate “fully” on getting out of unemployment in the long term. To do this, they should be freed from “existential worries about the apartment or small savings”. According to the traffic light plans, the suitability of the apartment should not be checked for someone who is entitled to basic security for two years. During this period, savings should not have to be touched.
Heil announced further reliefs: “There will also be more generous opportunities for additional earnings,” he said. “Children of basic income support recipients who have a holiday job will no longer experience that this is offset.”
When asked whether the new rules would provide an incentive to settle in for a longer period of basic social security, the minister said no. “Most people want to work,” he said with conviction.
Draft law for minimum wage in early 2022
As a first official act at the beginning of the new year, the labor minister also wants to present the draft law to increase the minimum wage to twelve euros, as agreed by the traffic light coalition. “We get to work straight away – and those who know us know that we can be quick,” added Heil. Millions of people in Germany would benefit from the increase, “mostly women, by the way”.
The minister does not fear negative consequences on the labor market. “Overall, the labor market will not be harmed. On the contrary, the economy is becoming more productive, ”Heil continued. “The issue after the pandemic will be whether you can still find sufficiently qualified skilled workers as an employer.” The higher minimum wage could help. It also benefits the economy, “because it strengthens domestic demand”.
When asked whether the sharp rise in the minimum wage could threaten the existence of small and medium-sized enterprises, Heil replied: “Your question reminds me of the doom scenarios that were forecast when the minimum wage was introduced. Today we know that none of that happened. ”The SPD minister assured that the government would intervene once and that the setting of the wage limit would then be left to the independent minimum wage commission.
The statutory pension is also to be strengthened after the traffic light coalition and private pension provision is to be reformed.