No increase in citizen’s allowance in 2025: Welfare association criticizes

A freeze for citizens' allowance recipients – there will be no increase next year. The parity association criticizes the plan.

It is discussed again and again and criticism is voiced again and again. The citizen's allowance is not to be increased next year – a zero increase for more than five million recipients, according to the German Press Agency (dpa). Federal Labor Minister Hubertus Heil (SPD) made this clear on Wednesday (4 September 2024) on RTL/ntv Frühstart. The background to this is “the negative trend in inflation to which the citizen's allowance is linked,” informs the Catholic News Agency (KNA)In August, consumer prices rose at a slower rate than they have in three years. The inflation rate was 1.9 percent, according to the dpa. According to this, the “constitutional minimum subsistence level” is guaranteed. Critics see things differently and would like to see an increase in the citizen's allowance.

How the citizen’s allowance is calculated

Currently, the standard rate for citizen’s allowance for a single adult is 563 euros – this was determined by laws, regulations and average calculations, informed Daily News. The citizen's allowance is calculated using complicated procedures – for example, the income and consumption sample is used, in which around 80,000 households are surveyed. In addition, there is a special evaluation of low-income households. Then the standard needs play a role – alcohol, tobacco, driving, package holidays, cut flowers and houseplants, gambling and pets do not belong to the “humane minimum subsistence level”, according to Daily NewsThe Standard Needs Averaging Act breaks down how much money is allocated for which items, for example 134.90 euros per month for food in a single-person household.

The calculation also takes into account the extrapolation. This is intended to enable a faster response to the effects of inflation. Data from the current year is used. This indication of current inflation is somewhat behind, so the additional extrapolation is intended to remedy this.

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Paritätischer Wohlfahrtsverband: Citizens’ allowance is still too low

“The citizen's allowance is still far too low. “Prices continue to rise and a lack of increase would be a social policy step backwards,” said General Manager Joachim Rock to the “RedaktionsNetzwerk Deutschland” (Thursday, September 5, 2024), as reported by the Evangelical Press Service (epd). The burdens are still high, so the citizen's allowance should actually be increased. According to its own calculations, the association is demanding at least 813 euros per month for a single-person household, informs Daily NewsRock further explains that with 563 euros for a single adult, “a healthy diet, adequate mobility and social participation” is not possible.

The freeze on the citizen’s allowance is due to the application of the “current rules”, Enzo Weber from the Institute for Employment Research (IAB) informed ZDF.de. Nevertheless, the FDP claims this step for itself:
“Anyone who goes to work must always have significantly more money in their pockets than someone who lives off taxpayers' money,” says FDP General Secretary Bijan Djir-Sarai to the dpa. “The fact that the Minister of Labor is now complying with our request not to increase salaries next year is a first important step in this direction.”