The reform takes effect on Wednesday and affects around 3.8 million employable benefit recipients. Originally, CDU leader Friedrich Merz had announced savings in the ‘double-digit billions’ during the 2025 federal election campaign. Instead, the aid is now being restructured, which, according to government expectations, will reduce costs by at most a double-digit million amount.
At the core of the reform are tougher sanctions. Those who do not write job applications or refuse training courses will have their benefits cut by 30 percent for three months – that’s around 150 euros less per month. For missed appointments at the job center, the cut applies after the second time for one month; after three missed appointments, payments may be stopped entirely. People with mental illnesses are exempt from the sanctions.
The grace period for assets is abolished. Previously, recipients could keep assets of up to 40,000 euros in the first year. In the future, allowances apply: 5,000 euros for under-30s, 10,000 euros up to age 40, 12,500 euros up to age 50, and 20,000 euros for older individuals. Housing costs are also capped: in the first year, the job center covers a maximum of one and a half times the local appropriate limit, after that only the limit itself.
Social associations sharply criticize the reform, especially the tightening for families with children. Social Minister Bärbel Bas (SPD) emphasizes: ‘Those who need help can rely on support. But those who can work must contribute to taking care of themselves again.’
Source: www.faz.net
