Asylum benefits for Ukrainian refugees don't yield any savings switch - Displaced Ukrainians find no financial relief from transitioning to asylum status
German Government Proposes Changes to Ukrainian Refugee Benefits
The German government has proposed a draft bill to alter the benefits received by Ukrainian refugees, with the aim of reducing costs and encouraging employment. The bill, initiated by Labor Minister Bärbel Bas (SPD), seeks to change the entitlement of Ukrainian refugees from the civilian unemployment benefit (Bürgergeld) to the lower asylum seeker benefits (Asylbewerberleistungen) for those arriving after April 1, 2025.
The proposed change will see a reduction in benefits for Ukrainian refugees, with the Bürgergeld (currently 563 euros for one person) being replaced by the asylum seeker benefits (Asylbewerberleistungen), set at 441 euros, approximately 20% less. This change applies only to refugees arriving after April 1, 2025. Those who arrived before this date will continue to receive Bürgergeld without change.
Refugees arriving between April 1, 2025, and the law’s enactment will keep receiving Bürgergeld payments until the end of May 2026, after which the lower asylum seeker benefits will apply. The bill excludes Ukrainians arriving under migration programs for skilled workers or studies from the benefit cut.
The government expects savings of about €1.2 billion in 2026 and €350 million in 2027 from these changes. The majority of people from Ukraine receive unemployment benefits, with around 519,000 Ukrainians registered as employable in July and entitled to unemployment benefits. The remaining costs will be borne by the states and municipalities.
The CDU/CSU parliamentary group has advocated for even stricter measures, applying asylum seeker benefits to all Ukrainian refugees regardless of arrival date. However, SPD leaders, including Minister Bas, have rejected this proposal, citing the coalition agreement that limits such changes strictly to new arrivals.
The draft law reflects a political compromise, balancing cost control with integration policies. The SPD aims to avoid destabilizing the coalition government with this proposed legislation. The bill is currently under departmental consultation, and if passed, it is expected to be dealt with by parliament and passed by the end of the year.
This shift from generous unemployment benefits to more limited asylum seeker benefits for Ukrainian refugees arriving from April 2025 onward aligns with the coalition agreement and aims for fiscal savings while maintaining support for earlier arrivals and skilled migrants.
- The proposed employment policy in the draft bill aims to encourage Ukrainian refugees to seek employment by reducing the benefits received, as part of the German government's plan to cut costs associated with refugee support.
- The ongoing political discourse regarding the employment policy of Ukrainian refugees involves debates between the CDU/CSU and the SPD, with the CDU/CSU advocating for stricter measures and the SPD limiting changes strictly to new arrivals.
