The monthly payments of the citizen’s allowance will not be increased next year. Federal Labor Minister Hubertus Heil announced a freeze on the TV channel RTL. The SPD politician justified this with the legally prescribed procedure for calculating the amount of the standard rates. If inflation is high, the standard rates must also be adjusted accordingly. Inflation has fallen sharply to 1.9 percent recently, said Heil. Therefore, there will be no increase in the citizen’s allowance on January 1. “And that is right.” People in need must be helped. “But it is also clear: This is the minimum subsistence level, no more, but also no less.”
Monthly payments had risen by more than twelve percent in 2024. In retrospect, it became clear that the increase was too high because the development of inflation had been overestimated. The freeze had therefore already become apparent at the end of last year. Adults living alone will therefore continue to receive 563 euros per month for living expenses in 2025, while partners and children will receive slightly less. The FDP had already called for fundamental reforms to the citizen’s allowance. Federal Justice Minister Marco Buschmann (FDP) had recently even suggested a reduction.
According to Heil, the sanctions against those who refuse to work should be tightened up. The labor minister stressed that there are obligations to cooperate. There have always been such obligations, but the job centers said that they were too bureaucratic. It is not a question of suspecting everyone of laziness. But if someone is chronically absent from appointments, there must be restrictions.
Heil said he also wanted to send a signal against welfare abuse. There must be tough sanctions for illegal work despite receiving benefits. The minister also announced an improved exchange of data between job centers and the customs authorities’ illegal work control system.