Citizens’ allowance: Federal Labour Minister Heil announces zero increase in citizens’ allowance

The monthly payments in the citizen's allowance will not be increased next year. Federal Minister of Labour Hubertus Heil (SPD) announced a freeze on the TV channel RTL/ntv. Heil justified this with the legally prescribed procedure for calculating the level of the standard rates. Inflation has fallen sharply to 1.9 percent. Therefore, no increase in the standard rates is planned for January.

“That is also the right thing to do,” said the Federal Minister of Labor. People in need must be helped. “But it is also clear that this is the minimum subsistence level, no more and no less.” There are obligations to cooperate, said Heil. The sanctions should therefore also be tightened up.

Zero round was already looming

It is not about suspecting all recipients of citizen's allowance of being lazy. But if someone is chronically absent from their appointments, there must be restrictions. “In this way, he also wants to send a signal against social abuse,” said Heil. There must also be tough sanctions for illegal work despite receiving benefits. Heil also announced an improved exchange of data between job centers and the customs authorities' illegal work control department, as well as a reduction in bureaucracy.

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.

That is 61 euros more per month than last year. This was met with much criticism – especially from the CDU. Federal Minister of Justice Marco Buschmann (FDP) even suggested a reduction. This downward adjustment had the SPD but rejected.