SPD proposes eliminating financial support for individuals engaging in unreported employment.
The Social Democratic Party (SPD) aims to crack down on welfare fraud through illicit work, as per a report. This action is unlikely to be impeded by the Free Democratic Party (FDP). According to Lindner, some individuals seem to have misconstrued Citizen's Income as an unconditional basic income.
The SPD's plan involves imposing severe penalties on welfare fraud via undeclared work, including the withdrawal of state benefits for those caught working in the black market, as reported in "Bild" newspaper, quoting party sources. The same penalty applies to total refusers, causing a two-month halt in benefit payments. This measure is intended to intensify pressure on welfare recipients to secure regular employment.
Reportedly, rent payments will still be covered to avert homelessness, as per the "Bild" article. The plan is backed by Federal Chancellor Olaf Scholz, Federal Labor Minister Hubertus Heil, and SPD Chairman Lars Klingbeil, and is part of the ongoing talks for the federal budget 2025. Bundesfinanzminister Christian Lindner of the FDP is also said to be informed about the proposal.
Lindner, given the tough budget negotiations for 2025, advocates for adjustments to Citizen's Income. He opines that the actual benefits of Citizen's Income haven't matched expectations due to practical experiences. "Some seem to have misunderstood Citizen's Income as a form of unconditional basic income," Lindner told "Rheinische Post". However, this was not the original intention.
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Lindner expresses a readiness to discuss this topic with coalition partners SPD and the Greens. He emphasized, "A significant number of citizens feel it's unfair when the gap between working and not working is too narrow. Those who receive social benefits should make an effort to rejoin the workforce." Citizen's Income, the successor to Hartz IV, was launched on January 1, 2023.
The red-green-yellow federal government of Federal Chancellor Olaf Scholz faces difficult budget negotiations due to budget inconsistencies. The cabinet is expected to approve the budget at the start of July. A special SPD presidium meeting has been scheduled for Sunday. On the same day, Scholz, Finance Minister Lindner, and Vice-Chancellor Robert Habeck of the Greens will convene to discuss the federal budget 2025.
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The Alliance 90/The Greens, being part of the red-green-yellow federal government, will have to consider Lindner's views on adjusting Citizen's Income during budget negotiations. Despite SPD's proposals to penalize undeclared work among welfare recipients, some individuals may still view Citizen's Income as an equivalent to an unconditional basic income, as expressed by Christian Lindner. This misconception could potentially stir discussions within the coalition, involving figures like Robert Habeck and Olaf Scholz.
