Heil wants to temporarily cut citizens' benefits for those who refuse to work
Plans from the Ministry of Labor envisage that people who refuse to work in the long term and have no good reason to do so will temporarily lose their Citizen's Income completely. A bonus for further training is also to be abolished.
Federal Minister of Labor Hubertus Heil wants to at least temporarily withdraw support from recipients of the citizen's allowance if they persistently refuse to work. This emerges from a draft bill of the so-called Second Budget Financing Act 2024. According to the draft, which is currently being coordinated by the ministries, the benefit is to be completely withdrawn for two months.
"Anyone who does not cooperate and refuses all offers must expect harsher consequences. We will therefore tighten the sanctions against total refuseniks," Heil told the newspaper "Bild" as justification. "It is not acceptable for a small minority to bring the entire system into disrepute."
The SPD politician also emphasized the need for social security. The "overwhelming majority" of benefit recipients cooperate in their attempts to gain further qualifications and find work.
The planned citizens' income bonus for further training is also to be abolished. However, financial incentives such as further training allowances and further training bonuses are to be retained.
The Federal Agency must also make savings
The changes are a consequence of the budget negotiations in the traffic light coalition, in which the Ministry of Labor must also make a contribution to consolidation. The draft shows that the Federal Employment Agency (BA) is to transfer 1.5 billion euros to the federal government in 2024 and 2025 to compensate for previous subsidies. In 2026 and 2027, the BA is then to pay 1.1 billion euros each.
In addition, it is to be stipulated that unemployment insurance contributions can only be reduced if the BA has built up a reserve of 0.8 percent of gross domestic product. "This increases legal certainty for the BA and those paying contributions," it says.
The Citizen's Income for around 5.5 million adults and children on basic income support will increase by up to 61 euros per month in 2024, the biggest increase ever - by a good twelve percent. In 2025, however, the increase will only be very small.
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Hubertus Heil, the Federal Minister of Labor, suggested temporarily withdrawing Citizen's Income from unemployed individuals who persistently refuse work. This proposal is included in a draft bill for the Second Budget Financing Act 2024, which also aims to abolish the citizens' income bonus for further training. The changes are a result of budget negotiations within the traffic light coalition, requiring the Ministry of Labor to contribute to fiscal consolidation. The Federal Employment Agency is expected to transfer funds to compensate for previous subsidies, with future contributions also required.
Source: www.ntv.de
