Rearrangement: Ukrainians face unaltered high prices for fresh goods
The German government has proposed a significant change in the legal status and welfare benefits for Ukrainian refugees arriving in Germany from April 1, 2025. This alteration is expected to result in substantial savings for the federal government.
Under the new proposal, new Ukrainian arrivals will no longer receive the full civilian assistance payment known as Bürgergeld (€563 per month). Instead, they will receive a lower payment under the Asylum Seekers Benefits Act (€441 per month), which is approximately 20% less.
The anticipated financial impact is projected to save Germany around €1.2 billion in 2026 and €350 million in 2027 from these reductions. It's important to note that this measure does not affect Ukrainians who arrived before April 1, 2025, or those admitted under specialized migration programs such as skilled workers or students.
The draft for this change is currently in interdepartmental consultation. If implemented, around 21,000 Ukrainians who have arrived since April 1 may be affected by the new regulation.
The Ministry of Social Affairs expects a zero-sum game in the bill for 2026, with costs for unemployment benefits, basic security, and assistance for the cost of living decreasing by approximately 1.32 billion euros. However, additional costs of 1.375 billion euros for benefits under the Asylum Seekers' Benefits Act are expected.
Despite the anticipated savings, the Minister of Social Affairs, Barbara Steffens, has predicted no significant savings from the change in benefits for Ukrainian refugees. This is in contrast to the Bavarian Minister President, Markus Söder, who proposed that all Ukrainian refugees, not just new arrivals, should receive asylum-seeker benefits. However, Steffens has rejected Söder's proposal.
It's worth mentioning that Ukrainian refugees will retain the right to work immediately. They will also not be required to apply for asylum for this change to take effect. Health services are limited under the Asylum Seekers' Benefits Act, but Ukrainian refugees will still be eligible for these services.
As of now, around 700,000 Ukrainians are entitled to unemployment benefits, including approximately 200,000 children. The change will move these individuals from unemployment benefits to asylum-seeker benefits.
This change in legal status and corresponding reduction in welfare benefits for new Ukrainian refugees is explicitly designed to generate significant federal savings starting in 2026. The debate continues, with some German politicians pushing for even broader application of reduced benefits, but the current plan focuses on new arrivals after the specified date.
The proposed change in policy-and-legislation regarding the welfare benefits for Ukrainian refugees is a significant shift in politics, as it aims to generate substantial savings for the federal government from April 1, 2025. This alteration will affect around 21,000 Ukrainians who have arrived since the specified date, as they will receive reduced benefits under the Asylum Seekers Benefits Act, which is a topic of discussion in the general-news.
