Citizens' benefit 2025: Why recipients should not expect an increase

Citizens' benefit 2025: Why recipients should not expect an increase

Citizens' money, which was introduced in 2023 as a successor to Hartz IV, has been criticized. It is too little away from the statutory minimum wage, which is discussed both in public and in the media. Employers express concerns that the citizen's allowance may be too high and could encourage recipients to receive benefits instead of full-time work. The ifo Institute was unable to confirm these fears. According to the Federal Ministry of Labor, citizen's benefit is an important source of livelihood for around 5.6 million people in Germany.

With a view to 2025, questions have emerged among recipients about increasing the standard rates. However, from January 2025 there will be a “zero round”, meaning there will be no increase in standard rates. This decision was approved by the Federal Cabinet and the Federal Council in September 2024.

Standard rates for 2025 remain unchanged

The standard rates for citizen's benefit in 2025 remain unchanged: single people and single parents receive 563 euros, couples receive 506 euros per partner, adults in institutions receive 451 euros, young people between the ages of 14 and 17 receive 471 euros, children from 6 to 13 years receive 390 euros and children between the ages of 0 and 5 years receive 357 euros. The last increase in standard rates took place on January 1, 2024. Despite the decrease in the cost of living in some areas, the amounts remain the same.

The zero round is essentially due to the property protection regulation (§28a Paragraph 5 SGB XII), which excludes a reduction in citizens' allowance. The calculation of the citizen's allowance is based on a mixed index, which is based 70% on price developments and 30% on wage developments. Forecasts for increasing citizens' money for 2026 are so far unclear, with the German Bundesbank predicting an inflation rate of around 2.2% by 2026. The final decision on adjusting the citizen's allowance for 2026 will be made in 2025.

In 2025 there will be a “zero round” of citizen’s benefit for the first time, which means that the amount for single adults will remain at 563 euros per month. This regulation raises questions about the long-term adequacy of benefits, especially since the adjustment of standard requirements usually takes inflation into account. While inflation has driven significant increases in recent years, specifically an increase of over 12% as of January 1, 2024, the zero round could pose challenges for recipients in the coming months, especially as other living costs rise.

The next results of the income and consumption sample (EVS), which is carried out every five years, are expected for 2025 and could lead to a reassessment of the standard requirements in the future buerger-geld.org reported. This makes it clear that the situation of citizens' benefit recipients will continue to be under special observation in the coming year.

The achievements of recent years, particularly due to significant increases, could be called into question by the current zero round South Courier holds on. Recipients must therefore not expect any improvements, which could be perceived as unsustainable in this day and age.

– Submitted by West-East media