Citizens’ allowance from 2023 – millions of people will soon receive more money from the state

Hartz IV is dead, at least the so-called unemployment benefit II is to be replaced by the new citizen benefit from 2023. One should not confuse the citizen’s income with an unconditional basic income, because not every citizen is entitled to it.

Citizens’ income is a basic security benefit for job seekers and is intended to ensure that these people can secure their living needs (minimum subsistence level).

Anyone who was previously entitled to unemployment benefit II or social benefit – currently there are 5.2 million people in Germany – will in future be entitled to citizen benefit. It should not be necessary to submit new applications for this.

The cabinet has already approved the draft law, and the topic is now being discussed in the Bundestag. If the draft is accepted, so be it
Citizen’s income on January 1, 2023
start.

What the new citizen money includes

But what are the cornerstones of the new citizens’ income?

• More money:
  The standard rates will be increased, single people will receive 502 euros per month from 2023, which is over 50 euros more than before. Adults living with partners receive 451 euros. Young people aged 14 and over get 420 euros, children from 6 to 14 years 348 euros, under-6-year-olds 318 euros. In addition, inflation should be taken into account in the annual adjustment of the standard rates in the case of citizen income in advance instead of afterwards.
• Higher allowances:
  Those who earn between 520 and 1,000 euros should be allowed to keep more of their income. The allowances will be increased to 30 percent (previously 20 percent). In addition, the allowances for the income of pupils, students and trainees will be increased to 520 euros.
• Savings:
  Anyone who is dependent on citizen income in the future should be allowed to keep their savings for the first two years. Assets only have to be touched from 60,000 euros or an additional 30,000 euros for everyone else in the community of needs.
• Apartment:
  There is also a two-year transitional period for the apartment, during which recipients of citizen’s income do not have to move. The costs for housing and heating are covered in full during this period.
• Continuing education:
  Anyone who wants to do an apprenticeship or retraining should be given more intensive support. In addition, an additional monthly training fee of 150 euros is paid for participation in qualification-related training courses. A bonus of 75 euros per month is to be introduced for participation in measures for sustainable integration.

New regulation for reductions in performance

With the citizens’ allowance, the reductions in performance are newly regulated according to the specifications of the Federal Constitutional Court. A new feature is a six-month period of trust, during which there are no legal consequences for breaches of duty. After the end of the trust period, the following rules apply:

• abatement cap:
  Reductions in benefits due to repeated breaches of duty and failure to report amount to a maximum of 30 percent of the relevant monthly standard requirement. Accommodation and heating costs are not reduced.
• cases of hardship:
  A reduction due to breaches of duty is limited to 20 (instead of the previous 30) percent for the first breach outside of the trust period. There is no reduction in performance if this would lead to exceptional hardship in a specific individual case.
• touch up:
  Reductions in performance are to be canceled if the beneficiaries fulfill their obligations to cooperate or subsequently credibly declare that they will comply with their obligations.
• No tightening:
  The previous stricter special regulations for under 25-year-olds are no longer applicable. If the benefits for under 25-year-olds are reduced in the future, the job centers should offer advice and support.
• trust time:
  Reductions in performance in the event of breaches of duty during the six-month period of trust are excluded. During the period of trust, a reduction due to failure to register only occurs with the second violation.
• Case study:
  The beneficiary is given the opportunity to personally present the circumstances of their individual case. If they repeatedly violate their obligations or miss registration deadlines, the job center should advise them.

(with material from dpa)