Federal Ministry of Labour rejects cuts in state benefits: increases made "in accordance with the law"
**The Federal Ministry of Labour has rejected the FDP's demand for cuts in unemployment benefits. The recent increase in the so-called standard need rates was "made in accordance with legal provisions," a ministry spokeswoman said on Monday in Berlin. There is "no room for discretion" here. She also pointed out that a reduction is not legally feasible. There is a "legal protection of possession" for recipients of unemployment benefits, which means that payments cannot be reduced, but must at least be maintained at the current level.
The standard rates had been significantly increased by around 12 percent at the beginning of 2024. The reason was the high inflation of the previous year. However, the price increase has since decreased. Therefore, the spokeswoman expressed the expectation that there would be a zero round for unemployment benefits in the coming year. The basis for this is data from the Federal Statistical Office, which is not yet available for the next reference date for adjusting the standard rates.
FDP parliamentary group leader Christian Dürr told the "Bild" newspaper on Monday that due to the stronger-than-expected decline in inflation, unemployment benefits are currently around 14 to 20 euros too high per month. Therefore, "an adjustment downwards" is necessary. However, this is ruled out by law, according to the Ministry of Labour. The amount of unemployment benefits, as well as social assistance, is determined by a mixed calculation that takes into account 70 percent of the price development and 30 percent of the development of net wages.**
The Ministry spokeswoman anticipates a potential zero increase in unemployment benefits due to decreasing inflation rates, as indicated by data from the Federal Statistical Office. However, the FDP's parliamentary group leader, Christian Dürr, believes that unemployment benefits are currently overpaid by 14 to 20 euros per month due to the stronger-than-expected decline in inflation, but this proposed reduction is contrary to the laws established by the Ministry of Labour, which does not allow for a reduction in the amount of unemployment benefits.
