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Germany Plans to Reduce Unemployment Benefits for New Ukrainian Refugees
Germany is set to make significant changes to the unemployment benefits for Ukrainian refugees, with a draft law aiming to reduce social expenditure. The proposed changes, which still need approval from the Federal Government and the Bundesrat, will take effect by the end of 2025.
From April 1, 2025, newly arrived Ukrainian refugees will no longer be eligible for the higher Bürgergeld (citizen's benefit), which can be up to about €563 per month. Instead, they will receive lower payments under the Asylum Seekers Benefits Act, around €460 monthly, equivalent to benefits given to other refugees.
The proposed changes are a response to the growing number of Ukrainian refugees in Germany, with approximately 1.25 million currently living in the country. Bavarian Prime Minister Markus Söder and the CSU leader have called for excluding all Ukrainian refugees from higher benefits, proposing cuts to reduce budget burdens.
However, the German Vice Chancellor and some Social Democratic Party members oppose cutting benefits for Ukrainians already in Germany. They argue that such savings are offset by administrative costs and that many Ukrainians are already integrated into the labor market system. Ukrainians receive temporary protection status, which guarantees residence and social support, including Bürgergeld.
As of May 2022, about 34.9% of registered Ukrainian refugees had official jobs, but a significant share remains unemployed or attending employment programs. Language barriers, family responsibilities, and integration challenges contribute to the high unemployment rate.
Chancellor Friedrich Merz plans a broader reform of social assistance from 2026, aiming to restructure benefits, introduce a basic income, tighten housing cost rules, and ensure support goes primarily to those who truly need it. This reform would affect all unemployed individuals, including Ukrainian refugees, to encourage labor market participation and reduce undeclared work.
The debate about the citizen's allowance continues, with different opinions within political parties. Söder wants to ensure that no unemployment benefits are paid to anyone who has come from Ukraine, both for those who come in the future and for all who are already receiving benefits. Critics, such as Sahra Wagenknecht, chair of the Left Party, argue that the citizen's allowance should not become an ever-growing refugee fund that encourages migration to Germany.
In 2024, 6.3 billion euros in unemployment benefits were paid to Ukrainian refugees, accounting for a significant portion of the total expenditure for unemployment benefits, which amounted to 46.9 billion euros. The ongoing political debate focuses on reducing social support for those arriving after April 1, 2025, while debates continue about extending or reducing benefits for those already in the country.
The government emphasizes fiscal sustainability and integration incentives but faces criticism regarding social fairness and integration support effectiveness. SPD social minister Barbara Bas will submit a bill for a reform of unemployment benefits to the cabinet in the fall, with a focus on expanding sanctions against people who refuse job offers or miss appointments. René Springer, social policy spokesman for the AfD parliamentary group, supports Söder's proposal for ending unemployment benefits for Ukrainian refugees.
Oleksii Makeiev, Ukrainian ambassador to Germany, expresses surprise at the proposal and opposes making Ukrainians the scapegoat. The debate about the citizen's allowance continues, with the overall goal of ensuring that support goes to those who truly need it while encouraging labor market participation among Ukrainian refugees.
- The policy-and-legislation changes in Germany's unemployment benefits, aimed at reducing social expenditure, coincide with the growing number of Ukrainian refugees due to war-and-conflicts, leading to heated debates about migration and politics.
- The general-news highlights the ongoing political dispute in Germany over the citizen's allowance for Ukrainian refugees, with Bavarian Prime Minister Markus Söder advocating for a complete cut in higher benefits, while critics argue against creating an ever-growing refugee fund that encourages migration to Germany.
- At the heart of the crime-and-justice concerns is the fairness of the proposed changes to unemployment benefits, as some argue that reducing benefits for Ukrainian refugees could potentially exacerbate their struggles with integration, unemployment, and crime.
