Approximately 5.5 million people currently receive Bürgergeld, but with the introduction of the new basic security system, much will change. The centerpiece of the bill is stricter rules and associated accelerated procedures for reducing benefits. A breach of duty now includes, for example, failing to attend scheduled appointments at the Jobcenter or refusing acceptable work or vocational training. In such cases, monthly payments can be immediately reduced by 30 percent.
Those who miss two appointments without a valid reason will also face similar cuts. A third missed appointment threatens a complete cancellation of benefits. If the individual does not get in touch within one month thereafter, the right to receive benefits is fully annulled, including housing assistance. However, people with whom contact is considered lost will still be given an opportunity to provide an explanation.
Expected Impact of the Changes
Consequently, cooperation requirements are increasing. Bernd Fitzenberger, Director of the Institute for Employment Research (IAB), cautiously answered in the affirmative when asked if the reform is moving in the right direction. He noted that certain aspects would be adjusted and that a slight increase in pressure helps ensure compliance with the rules. The main point, he believes, is not to overdo it, as taking the first available job that does not contribute to long-term labor market integration makes little sense.
Further Provisions of the Reform
The reform will also affect how personal assets are accounted for. The plan is to abolish the current one-year grace period during which savings and housing costs were largely protected. Furthermore, future plans include limiting the amount of covered rent. Payments will cover an amount not exceeding 1.5 times the established standard, which varies by municipality. Until now, the rule was that during the first year of receiving benefits, rent was covered by the state even if it was too high.
The implementation of the new system is driven by policymakers’ desire to counteract the abuse of social benefits. Measures include a stricter crackdown on illegal employment and increased employer responsibility. Realizing these goals will likely require more inspections.
Will the Sanctions Withstand Legal Scrutiny?
Representatives of the Green Party and the Left Party consider the tightening of sanctions unconstitutional. In contrast, Rainer Schlegel, the former president of the Federal Social Court, concluded in his legal opinion that even a total cancellation of benefits could comply with the Basic Law (Grundgesetz).
In 2019, the Federal Constitutional Court set strict limits on total sanctions. At that time, it was stated that a complete cessation of payments based on available data did not meet constitutional requirements. However, it was also noted: “If a factually subsistence-securing and acceptable employment is refused without valid reason, despite the opportunity provided during the procedure to explain the specifics of the personal situation, a total deprivation of benefits may be justified.”
Internal Resistance Within the Coalition
Several members of the SPD initiated a party-wide survey to prevent the planned tightening of rules. As reported by the SPD board on Monday in response to an inquiry, the initiators have cleared the first hurdle to launch the procedure. This was previously reported by the Berlin-based publication tageszeitung (taz).
“The quorum for the first stage was met on December 19, 2025,” the SPD headquarters stated. This required the signatures of one percent of party members. Now, the party board, in coordination with the initiators, must determine the timing for the main vote among all SPD members. For the initiative to succeed, it will require the support of at least 20 percent of the party membership.
The initiators include former Juso chairwoman Franziska Drohsel, deputy chairwoman of the Bavarian SPD Eva-Maria Weimann, and Thuringian SPD politician Melissa Butt. The taz publication emphasized that the internal party vote could create timing issues within the government coalition. For the reform to be implemented by July 1, 2026, the law must be passed by the Bundestag in the spring. However, there is very little time left to complete the internal SPD procedure before then.
Source: dpa and AFP
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