No increase planned for a long time

Despite speculation about an increase, the citizen's allowance remains the same. The effects could be far-reaching.

Hamm – Hubertus Heil, the SPD's Minister of Labor and Social Affairs, made a long-awaited announcement at the beginning of September 2024: From January 1, 2025, there will be no increase in the citizen's allowance. The reason for this is a significant decline in inflation, said Heil. The minister emphasized: “That is also the right thing to do.”

Bad news for citizen’s allowance recipients: No increase planned for some time

It is conceivable that there will be no adjustment of the citizen’s allowance in 2026, as the Picture from government circles. An increase in the standard rates would not be expected until 2027 at the earliest.

However, this information could not initially be independently confirmed. In addition, it is not politically possible to make a decision on the amount of the citizen's allowance. The determination is made through a relatively complex procedure, with the most important principle being that the citizen's allowance must cover the minimum subsistence level. This is also anchored in the Basic Law and was most recently confirmed by the Federal Constitutional Court in 2019. The state has a duty to protect human dignity, which is also done through state benefits.

Dagmar Schmidt, deputy chairwoman of the SPD parliamentary group, stressed IPPEN.MEDIA: “The standard rate is not a political football, but rather determines which basic needs all people should be entitled to.” She pointed out that when the citizen's allowance was introduced, there was a broad consensus on the calculation mechanism, including the FDP and the Union.

Citizens’ allowance linked to inflation: How the amount is determined for citizens’ allowance recipients

The amount of the citizen's allowance, which must cover the minimum subsistence level, is regularly determined through random samples. Every five years, households in Germany are surveyed about their spending. On this basis, it is determined what is necessary to cover daily needs. The standard needs for 2024, for example, were determined from a random sample from 2018.

Price increases are taken into account. Both inflation and wage developments are included in the calculation, a procedure that is also used for the annual pension increase in the summer. Due to high inflation in 2022 and 2023, there was a significant increase in 2024. The zero increase announced for 2025 is the result of the fact that inflation has not developed further to the same extent. Therefore, no adjustment was necessary.

According to the Picture The government assumes that there will be no major price jumps in 2025, which is why no increase is likely to be expected for 2026. However, no one can say with certainty whether this forecast is correct.

FDP wants to cut citizens' allowance: Reasons why this is not possible

Under current law, it is not possible to reduce the citizen's allowance rates. This is guaranteed by the so-called protection of existing rights. However, the FDP is calling for this regulation to be repealed, as the group's labor market policy spokesman, Christian Dürr, recently stated.

However, Dagmar Schmidt, deputy chairwoman of the SPD parliamentary group, replied to IPPEN.MEDIA: “Those who keep calling for cuts should finally state clearly which basic needs they want to cut from people, then we can discuss it objectively.” She added that honesty in the debate requires “saying whether you want to cut living costs or people's participation in society.” The SPD MP pointed out that “due to the abolition of the ancillary costs privilege this year, many people receiving citizen's allowance already have almost 10 euros less at their disposal.”

Due to a system error, a family receives 1,000 euros more in citizen's allowance per month than planned. However, the situation could soon change.