Tougher rules for recipients of citizen's income cause discussion in the coalition
Chancellor Scholz, Finance Minister Christian Lindner (FDP) and Economics Minister Robert Habeck (Greens) have also decided on tightening measures for social benefit recipients as part of the budget agreement. Starting from the rejection of job offers or violations of cooperation or reporting obligations, they will face faster and higher cuts in benefits.
Moreover, social benefit recipients will be required to accept jobs with a daily commute of up to three hours to and from work, starting from an agreed working time of six hours. For less working hours, the commute time is 2.5 hours. In addition, job centers will be tasked with finding jobs within a 50-kilometer radius of the social benefit recipient's residence.
"Non-policy compromises must now be objectively assessed in terms of their actual labor market effects," said SPD deputy faction leader Dagmar Schmidt to the news agency AFP on Sunday. "This is particularly the case with decisions regarding the increasingly popular topic of social benefits."
"These measures won't help us one bit in integrating people into work," said Green labor and social policy politician Beate Müller-Gemmeke to AFP. "And what doesn't help, we shouldn't do." The Greens are focusing on "qualification and guidance for the unemployed." This opens "ways to the labor market and creates opportunities and prospects."
"Those who don't want to work, even though they can, will face stricter rules with social benefits," wrote Buschmann in the online service X. The simultaneously adopted regulations for a tax incentive for overtime work also mean that employees will "earn more net from gross" in the future. This is "socially just and economically smart," emphasized FDP Minister Lindner.
The coalition leaders also agreed that for employees, allowances for overtime work beyond the agreed full-time work will be tax- and contribution-free. In addition, premiums from employers for extending working hours will be tax-subsidized.
"Labor incentives for overtime and flexible working hours must be comprehensively reviewed in terms of their effects," said SPD parliamentarian Schmidt. "Unlimited working hours for one parent should not lead to the other parent then reducing their working hours."
The SPD-led Federal Ministry of Labor gave a terse statement on the agreements between Scholz, Lindner, and Habeck over the weekend. "The concrete implementation of the decisions from July 5th is still to be awaited," it simply stated from the ministry of Minister Hubertus Heil (SPD).
- The Traffic light coalition, composed of the SPD, the Greens, and the FDP, has incorporated tightening measures for social benefit recipients in their budget agreement.
- Robert Habeck, the Economics Minister from the Alliance 90/The Greens, has agreed to strict provisions for social benefit recipients who fail to comply with job offer rejections or cooperative obligations.
- Dagmar Schmidt, the SPD deputy faction leader, expressed her views on the implications of non-policy compromises on the labor market and social benefits.
- The FDP, represented by Finance Minister Christian Lindner, supports the implementation of stricter rules for social benefit recipients who can work but choose not to.
- Marco Buschmann, a prominent FDP politician, highlighted the societal and economic benefits of the newly adopted regulations for overtime work and tax incentives.
- Civil servants in employment offices will now be required to locate jobs within a 50-kilometer radius for social benefit recipients, as mandated by the SPD-led Federal Ministry of Labor.
- The Greens, under Beate Müller-Gemmeke, advocate for qualification and guidance programs for the unemployed to promote integration into the labor market.
- Chancellor Olaf Scholz and his collaborators from the SPD, the Greens, and the FDP have reached consensus on a range of labor market policies, including tightening measures for social benefit recipients.
- Civil society groups, such as "Citizen's allowance recipients" and advocates for "Citizen's income," are monitoring the discussions and potential impact of these agreements on their constituents.
