No plans to reverse the increase in citizens' income

Household - No plans to reverse the increase in citizens' income

Despite the budget crisis, the German government is sticking to the planned significant increase in the citizens' allowance at the beginning of 2024. "I am not aware of any plans within the federal government to change the legal basis," said government spokesperson Steffen Hebestreit in Berlin. The Citizen's Income is set to increase by an average of 12 percent on January 1, 2024. FDP Secretary General Bijan Djir-Sarai had called for a reassessment of the citizen's income in the newspaper "Bild am Sonntag".

For single people, the citizen's income will be increased by 61 euros to 563 euros on January 1. Hebestreit clarified: "Everything that would have to be changed now would have to be done on a statutory basis." However, there are currently no plans for this.

In contrast to previous adjustments to the standard rates, inflation, which has risen sharply over the months due to a change in the rules, was taken more into account in the calculation for 2024. According to Secretary General Carsten Linnemann, the CDU wants to significantly reduce the Citizen's Income for young adults who are able to work if it comes to power.

The amount of the citizen's allowance is based on a so-called price index relevant to regular needs. Among other things, it takes into account expenditure on food, household electricity, housing and public transport.

The renewed discussion about the citizen's income has been sparked by the government's current budget crisis. If the 2024 federal budget is to be passed this year, the SPD, FDP and Greens will soon have to agree on the future course.

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1. Despite the budget crisis swaying Germany, the Federal Government remains committed to implementing the substantial increase in the citizens' allowance in early 2024, as per the initial plan.
2. In Berlin, government spokesperson Steffen Hebestreit affirmed a lack of awareness within the federal government regarding any intentions to alter the legal basis for the citizens' allowance adjustment.
3. FDP Secretary General Bijan Djir-Sarai had previously advocated for re-evaluating the citizens' income in a Sunday newspaper, allowing for extensive debate on the matter.
4. Amidst this renewed conversation about the citizens' allowance, the German government plans to raise the allowance for single people by 61 euros, elevating it to 563 euros, effective January 1, 2024.
5. When questioned about potential changes to the allowance, Hebestreit underscored that any adjustments would require statutory alterations, confirming the absence of such plans at present.
6. As inflation, fueled by a rule change, has surged in recent months, the calculation for the 2024 citizens' allowance increase has factored in this rise significantly more than it did previously.
7. The current budget crisis in Germany is contributing to the ongoing conversation about the citizens' allowance, and the SPD, FDP, and Greens must soon agree on the way forward for the 2024 federal budget to be passed this year.

Source: www.stern.de