Zero increase in citizen's allowance in 2025: Why there will be no increase

The citizen's allowance has been under regular fire since its introduction in January 2023. However, since the federal government's 60 billion euro budget hole was made public, every increase in social benefits has been viewed with particular skepticism. The CDU is not the only party to have repeatedly voiced criticism of the upcoming 12 percent increase in the citizen's allowance in January 2024. The traffic light party FDP is also demanding that there be a “zero increase” – i.e. no increase – in the citizen's allowance at least in 2025.

Now Federal Labor Minister Hubertus Heil (SPD) has also commented on this – and confirmed the freeze for the coming year. Read this article to find out why there will be no increase in the citizen's allowance in 2025.

By the way: Anyone who receives citizen's allowance also gets their rent paid by the job center. In Germany's largest cities, rent in connection with citizen's allowance can be as high as 780 euros. With citizen's allowance, you can also receive a bonus if you complete further training for a corresponding period of time. However, many citizen's allowance recipients hope in vain for a Christmas allowance.

Zero increase in citizen’s allowance: initially ruled out

In December 2023, Heil was still quite sure that he would not see a freeze on the citizen's allowance in 2025. The Federal Minister of Labor initially expected a smaller increase in the citizen's allowance for 2025 than in the previous year. zeit.de reported, Heil said this at an event in Ludwigsfelde near Berlin. He explained that although there would be a noticeable increase in the citizen's allowance from January 1, 2024, any subsequent increase would be “very, very low.” He added at the time: That means that this is already in the law at this point.

FDP calls for zero increase in citizen’s allowance in 2025 early

With these statements, Heil also responded to a demand from the FDP. In a conversation with the Picture Both Christian Dürr (FDP parliamentary group leader) and Pascal Kober (FDP social expert) had hinted that a freeze on citizens' allowance recipients could be imminent in 2025. Dürr stressed, for example, that if citizens' allowances rise more than inflation in 2024, it would be legally possible and necessary to have a freeze on the following year. “Anything else would send the wrong signal,” stressed the parliamentary group leader.

Kober also spoke to Picture He believes that a zero increase is possible and warns that too high an inflation adjustment, even if it is offset in subsequent years, could damage credibility. He is also relieved that “the people who finance the welfare state cannot convey this.”

Heil and the Citizens’ Allowance: Now there will be no increase in 2025

Almost half a year later, the Federal Minister of Labor began to see things differently. In the summer of 2024, Heil explained in a question and answer session in parliament that a zero increase in the citizen's allowance was actually on the horizon in 2025. This was first reported by the news agency Reuters. The monthly amounts rose sharply at the beginning of 2024 due to high inflation; now that prices are rising more slowly, his ministry expects that in 2025 “there may be a zero increase at some point,” said the SPD politician. At least “given the current situation,” this is likely, the SPD politician explained in May 2024. There is a legal method for calculating the citizen's allowance that takes price increases into account. However, this was less than was assumed in the previous year when the standard payments were increased.

At the beginning of 2024, monthly payments had increased by up to 61 euros per month. The standard rate for the monthly payment to cover the living expenses of an adult living alone is currently 563 euros. Rent and heating costs are also covered.

On 4 September, Heil confirmed in the programme “Frühstart” of RTL and ntvthat the freeze will come. Heil cited the decline in inflation as the reason for cancelling the increase next year, partly due to the fall in energy prices. “And that is why the figures and the legal mechanism indicate that, as predicted, there will be no increase in the citizens' allowance on January 1st.” And that is correct,” Heil explained.

Heil stressed that people in need will continue to be helped. “But one thing is also clear: This is the minimum subsistence level, no more, but also no less,” said the minister.

Important: Anyone applying for new citizen's allowance should be aware that they have to submit their bank statements to the job center. The job center then decides whether the rent for the apartment is appropriate or not.