Citizens' allowance too high? FDP pushes for new calculation rules

Do you, as a citizen's allowance recipient, receive too much? The FDP considers the standard rate to be high and would like to discuss a reform with the SPD and the Greens.

Berlin – The traffic light coalition has praised the citizen's allowance as a major reform and improvement for those affected. However, in the wake of the budget crisis and negotiations on austerity measures and the so-called growth initiative as a desired stimulus for more economic growth, the government has significantly tightened the rules. But even after that, the FDP is still pushing for reforms – and will start with the level of the citizen's allowance.

The next dispute within the traffic light coalition is emerging over the citizen’s allowance. According to the FDP politician Pascal Kober, Evangelical Press Service (EPD) further negotiations within the government. According to Kober, specialist politicians from the traffic light coalition are currently discussing more attractive additional income rules for citizens' allowance recipients and the further development of funding instruments. According to Kober, however, the FDP will again negotiate the calculation of the standard rates.

FDP wants to change the calculation of citizen’s allowance rates: Inflation as a sticking point

The current calculation method leads to distortions and must be changed again, explained Kober, labour market policy spokesman of the FDP parliamentary group, to the EPDIn particular, the last increase in the citizen's allowance significantly exceeded inflation. Kober is thus taking up the criticism of his parliamentary group leader Christian Dürr. He had called for the citizen's allowance to be reduced by 14 to 20 euros per month. The SPD and the Greens had rejected the demand.

With the abandonment of Hartz IV and the introduction of the citizen's allowance, inflation was reflected in the annual calculation of the standard rates. “In the past, the standard rates always lagged behind inflation,” said Kober, according to the portal Evangelisch.deThat was not fair for those affected.

Helena Steinhaus from the association Sanction-free which advocates for the interests of citizens’ allowance recipients. “The increases were merely inflation compensation, and they came too late.” “People’s purchasing power has improved in no way compared to Hartz IV,” wrote Helena Steinhaus in an article for the monthly magazine Leaves.

Calculation of the amount of citizen's allowance in the FDP criticism: Does not work if inflation drops sharply

According to FDP politician Kober, however, the pendulum is now swinging in the other direction. “We must accept the trend as a lesson that it will not work if inflation falls as quickly as it rose before,” said Kober, referring to the calculation method.

The Federal Ministry of Labor had already rejected Christian Dürr's demand for a reduction in the citizen's allowance rates. “That is not legally possible,” explained a spokeswoman. There is no room for manoeuvre. The reason for this is the so-called property protection regulation. It stipulates that standard rates cannot be reduced, even if the current calculation results in lower amounts than in the previous year. In such a case, the amount of citizen's allowance remains the same. The Ministry of Labor also assumes this for 2025.

Buschmann believes citizen’s income reform is possible – resistance from the SPD and Greens makes it unrealistic

Federal Justice Minister Marco Buschmann (FDP) believes that changes to the law and thus cuts to citizens' allowances are possible if the minimum subsistence level is maintained. His party colleague Kober, however, considers this unrealistic in view of the resistance of the SPD and the Greens. Technically, a change is still possible for 2025, Kober told the EPDHowever, the FDP could not simply count on the approval of its coalition partners.