According to the Ministry of Health, the citizen's allowance is 24 euros too high! Will it be cut?

On Wednesday, Social Minister Hubertus Heil announced that there would be no increase in the citizen's allowance. There will be no further increase in the monthly standard rate at the turn of the year 2025. Inflation has fallen more than expected – therefore no further upward adjustment is necessary.

+++ Also interesting: Citizens’ allowance freeze: Headwind for Heil decision – “A slap in the face” +++

But the truth is even more explosive – and could trigger new traffic light discussions about the citizen's allowance! According to a paper from the Ministry of Labor, the standard rate is even 24 euros too high!

Traffic light paper with citizen’s allowance hammer: standard rate too high

In the 16-page draft bill on the citizen's allowance, Hubertus Heil's ministry only comes up with a citizen's allowance of 539 euros for a single household for 2025. Since January, however, the standard rate has already been 563 euros.

+++ Exciting: News blog on the traffic light crisis: New quarrel! The FDP now even wants to cut the citizen's allowance +++

Does SPD minister Heil now have to cut the citizen's allowance because the increase in January 2024 was set too high? No, that will not happen because there is a property protection regulation and a reduction in the standard rate is not provided for in the law, reports ARD. The zero increase and the standard rate of 563 euros will remain. But the FDP is making initial demands not to leave it at that. According to “Table.Media”, FDP social politician Jens Teutrine wants a change in the Social Code to make a reduction possible.

Standard rate is frozen: No citizen’s allowance plus expected in 2026 either

Things are getting even worse for those receiving citizen's allowance. According to “Bild”, they cannot expect any increase in 2026 either. This is based on government calculations. “According to all forecasts, there will be no increase in the standard rates in 2026 either,” a government member told BILD.

If inflation develops normally, there will probably not be another upward adjustment until 2027.

Zero increase: “Bad news for millions of children and adults”

Meanwhile, there is also fierce criticism of the zero-round of citizen's income. The head of the Green Youth, Katharina Stolla, told our editorial team that she finds it “embarrassing when a social democratic labor minister celebrates after a zero-round.”

More topics for you:

Dr. Joachim Rock, General Manager of the general association “Der Paritätische”, also sharply criticized the citizen’s allowance announcement as a “sociopolitical step backwards and bad news for millions of children and adults”.

Social activist Helena Steinhaus recently said in the “Blätter Podcast” that the reality of life for citizens’ allowance recipients is completely ignored by politicians: “From the 20th of the month, people no longer have enough money to fill the fridge.” Inflation will reduce the purchasing power of benefit recipients in 2025.