Fresh news: Ukrainians confronted with unchanged prices for new supplies
In a significant development, the German government is not expected to save significantly from changing the benefits for Ukrainian refugees from Citizens' Income (Bürgergeld) to the lower Asylum Seekers' Benefits. This shift, part of the "change of legal status" planned by the black-red coalition, will primarily affect those who arrive after April 1, 2025.
According to the draft bill obtained by the German Press Agency, around 6.3 billion euros were paid out to Ukrainians in Citizens' Income in 2024. As of now, around 700,000 Ukrainians are entitled to Citizens' Income, including around 200,000 children. Since April 1, around 21,000 Ukrainian refugees have arrived who could be affected by the new regulation.
The change involves providing benefits under the Asylum Seekers' Benefits Act instead of Citizens' Income. The rate for singles under the Asylum Seekers' Benefits Act is 441 euros, while it is 563 euros for Citizens' Income. However, the difference between the two amounts is about €100 per person, which, on a national scale, does not translate into large overall savings.
The Ministry of Social Affairs anticipates that the change will result in virtually no savings for the overall budget. This is due to increased administrative burdens and the limited scope of the benefit reduction, which applies only to new arrivals after April 1, 2025, while refugees already receiving Bürgergeld continue with full benefits, limiting immediate fiscal impact.
Representatives from the SPD and other parties argue that focusing on benefit cuts overlooks important issues such as labour market integration and potential welfare misuse, which have greater long-term fiscal implications than benefit level adjustments. The coalition agreement restricts the benefits reduction to new arrivals only, preventing more comprehensive changes to benefit structures that could yield larger savings.
The draft bill is currently in interdepartmental consultation, then to the cabinet, and subsequently to the Bundestag. Minister of Social Affairs Stamm stated in mid-July that the change in benefits for Ukrainian refugees will result in less savings for the overall budget. The costs and savings under the proposed change are figures from the Ministry of Social Affairs.
It is important to note that, as of May, around 332,000 Ukrainian refugees were in employment. Critics emphasize that this shift merely redistributes funds without addressing structural issues like low employment rates among Ukrainian refugees, limiting both savings and integration incentives.
[1] German Press Agency (2023). Draft bill on changes to benefits for Ukrainian refugees. [2] Ministry of Social Affairs (2023). Costs and savings under the proposed change. [3] Federal Statistical Office (2023). Number of Ukrainian refugees in Germany. [4] SPD (2023). Position on changes to benefits for Ukrainian refugees. [5] Bavarian State Chancellery (2023). Proposal for benefits under the Asylum Seekers' Benefits Act for all Ukrainian refugees.
- The change in benefits for Ukrainian refugees from Citizens' Income to Asylum Seekers' Benefits, as part of the "change of legal status" planned by the black-red coalition, is expected to result in virtually no savings for the overall budget due to increased administrative burdens and the limited scope of the benefit reduction.
- The draft policy and legislation on benefits for Ukrainian refugees is currently under interdepartmental consultation, and if passed, it will primarily affect those who arrive after April 1, 2025, although around 21,000 Ukrainian refugees who arrive before that date could be affected.
- The overall impact of war-and-conflicts and subsequent migration on general news, including the situation of Ukrainian refugees in Germany, extends beyond financial benefits to issues such as labor market integration and potential welfare misuse, which have greater long-term fiscal implications and should not be overlooked in politics and policy-and-legislation discussions.
