Citizens’ allowance increase at the turn of the year? Heil makes a clear announcement

1. ruhr24
2. policy

Status: 05.09.2024, 08:33

From: Raphael Strecker

At the beginning of the year, there was a significant increase in the citizen's allowance. Labor Minister Hubertus Heil has now made a decision for 2025.

Dortmund – Hardly any other topic polarizes as much as the citizen's allowance. In mid-August, the FDP had already proposed a reduction in the citizen's allowance for all recipients. Federal Labor Minister Hubertus Heil (SPD) has now announced where the journey is headed.

Citizens’ allowance increase at the turn of the year? Heil makes a clear announcement

For recipients of the citizen's allowance, a freeze is looming: Hubertus Heil has announced that there will be no increase in the standard rates as of January 1, 2025. The minister justified this decision with the significantly lower inflation rate.

“Thank God inflation has fallen sharply, only 1.9 percent last month,” Heil explained in the RTL/ntv-Program “Frühstart”. According to the legally prescribed calculation mechanism, the current economic situation does not allow for an increase (read more political news on RUHR24).

Citizens’ allowance: 2025 brings zero increase for recipients after sharp increase in 2024

The federal government is legally obliged to review the amount of the citizen's allowance annually and adjust it if necessary. The calculation is based on 70 percent of the inflation rate and 30 percent of the net wage development.

At the beginning of 2024, there was a considerable increase in the citizen's allowance rates. Single adults received an increase of twelve percent to 563 euros per month. Incidentally, due to errors by the job center, many citizen's allowance recipients receive too little money.

Heil defended this increase: “When inflation is high, prices have also risen sharply – that was the case last year, for example for food or electricity – then the standard rates must be adjusted in order to ensure the minimum subsistence level.”

Zero increase in citizen's allowance: FDP politicians had called for illegal cuts

According to the Federal Statistical Office, inflation was 2.9 percent in January 2024, but settled at just 1.9 percent in August. This development has led to the FDP's calls for cuts to the citizen's allowance.

However, such cuts face legal and political obstacles. The SPD and the Greens have already spoken out against cuts. In addition, the Federal Ministry of Labor pointed to the so-called property protection regulation, which prohibits the state from reducing standard rates once they have been set.

Heil also announced that sanctions against those who refuse to work will be tightened. The minister is also planning to improve the exchange of data between job centers and the customs authorities' illegal employment control department in order to combat welfare abuse more effectively.