Discussing the proposal of Markus Söder for financial aid to Ukrainian citizens
German Government Proposes to Lower Citizens' Allowance for Ukrainian Refugees
The German government has proposed a change in the social benefits system for Ukrainian refugees, aiming to reduce the citizens' allowance (Bürgergeld) for those arriving after April 1, 2025. This move is part of a broader strategy to cut public expenditure and integrate refugees more effectively into the labour market.
Under the proposed changes, Ukrainian refugees would receive lower payments under the Asylum Seekers Benefits Act, a decrease of approximately €100 (around $116) per month per person compared to the current Bürgergeld. This measure reflects government efforts to address concerns about high unemployment among Ukrainians in Germany.
As of July 2025, about 64.1% of registered Ukrainian refugees with the Federal Employment Agency were unemployed, and political leaders have expressed concerns about low labor market participation relative to neighbouring countries. The reductions in benefits are intended to align Ukrainian refugees' social benefits with those given to other asylum seekers.
It is important to note that Ukrainian refugees who arrived before April 1, 2025, will continue to receive the higher Bürgergeld payments for now. However, political figures like Bavarian Prime Minister Markus Söder have called for abolishing Bürgergeld for all Ukrainians, including current recipients, advocating uniform lower benefits.
The draft law must be approved by the Federal Government and the Bundesrat (upper house) to take effect by the end of 2025. This move is part of a broader governmental strategy under Chancellor Friedrich Merz to reduce asylum applications to around 100,000 annually to better manage infrastructure and social service capacities.
There is ongoing public and legal debate about whether Ukrainians who have already received full benefits will have to return funds after the reduction takes place, but as of early July 2025, no legal requirement to repay past benefits was confirmed.
In 2024, citizens' allowance payments totaled 46.9 billion euros, an increase of about four billion euros compared to 2023. Of the total citizens' allowance payments in 2024, 24.7 billion euros (52.6 percent) went to Germans, and 22.2 billion euros (47.4 percent) went to people without a German passport. If the system were renewed, Ukrainians would be treated as asylum seekers and housed in bureaucratically assigned accommodations, with benefits around 100 euros lower than the citizen's allowance.
Approximately 6.3 billion euros were paid out to Ukrainian refugees and their children since the decision to switch them to the citizen's allowance system was made in April 2022, as a gesture of solidarity and for practical reasons such as faster integration into the labor market and financial relief for municipalities.
Other countries have also reduced their benefits for Ukrainian refugees, such as Ireland and Norway, while the Czech Republic and Poland have introduced regulations allowing Ukrainians to stay longer. The ongoing debate about the proposed changes in Germany highlights the global efforts to balance support for refugees with fiscal responsibility and labour market integration.
The German government's proposal to lower citizens' allowance for Ukrainian refugees is part of a broader national policy-and-legislation strategy aimed at reducing public expenditure and integrating refugees into the labor market. This move is reflective of ongoing politics concerning high unemployment among Ukrainian refugees in Germany.
The reductions in benefits for Ukrainian refugees under the proposed changes are intended to align their social benefits with those given to other asylum seekers, and they reflect a broader discussion on general-news topics, such as fiscal responsibility, labor market integration, and support for refugees.
