Bürgergeld

The Bürgergeld (lit. 'citizens' money') is Germany's unemployment payment introduced on 1 January 2023. The Bürgergeld was developed by Olaf Scholz's coalition government and agreed by Germany's two chambers in November 2022. Compared to its predecessor Arbeitslosengeld II (commonly known as Hartz IV), it has a higher unemployment grant (Regelsatz). Adult jobseekers living alone now received a default sum of €502 per month, compared to previously €449. The introduction of Bürgergeld also increased the amount of personal wealth that beneficiaries can hold without being deducted part of their unemployment grant. A single adult can own up to €40,000.[1] Bürgergeld also replaced the Sozialgeld, a benefit for people who cannot work.[2]

Predecessor
Main article: Hartz concept

The Bürgergeld predecessor Hartz IV was introduced on 1 January 2005 by the Second Schröder cabinet, a coalition of the German Social Democrats and Greens.[3] How much money beneficiaries received was adjusted several times since. In 2011, the grand coalition between Social Democrats and Christian Democrats reformed Hartz IV.[4][5]

Hartz IV monthly grant for adults living alone (Regelsatz) and Bürgergeld over time[6][7]

Reform

Beginning in 2022, labour minister Hubertus Heil (Social Democrats) developed the Bürgergeld proposal for the ruling traffic light coalition.[1] After the coalition passed their proposal in Germany's lower chamber (Bundestag), the opposition Christian Democrats (CDU) vetoed it in the upper chamber (Bundesrat).[8] This led to negotiations and a Bundesrat-Bundestag compromise reached via the Mediation committee procedure.[1]

Overview of the reform
Feature Hartz IV (2022)[3][9] Bürgergeld government proposal[1][10][11] Bürgergeld government-CDU compromise[1]
Agreed by    Second Merkel government (last reform in 2011)[4][5]     Scholz coalition

(blocked by CDU in Bundesrat)

     Scholz coalition and the opposition   CDU
Standard monthly unemployment payment (Regelsatz), single adult €449, adjusted annually €502, adjusted annually €502, adjusted annually
Grace period without sanctions - 6 months without sanctions -
Mild sanctions period - 24 months 12 months
Personal assets allowed (Schonvermögen), single adult €3,100, or €150 multiplied by the recipient's age, whichever is higher. (e.g€. 9,000 for a 60-year old jobseeker) €60,000 €40,000

References
  1. Gathmann, Florian; Medick, Veit (2022-11-22). "(S+) Bürgergeld-Einigung zwischen SPD-geführter Ampel und Union: GroKo lebt". Der Spiegel (in German). ISSN 2195-1349. Retrieved 2022-11-22.
  2. admin. "BMAS - Fragen und Antworten zum Bürgergeld". www.bmas.de (in German). Retrieved 2023-01-12.
  3. LPB BW. "Hartz IV".
  4. De Jure. Arbeitslosengeld II, Sozialgeld und Leistungen für Bildung und Teilhabe, retrieved 2022-11-22
  5. Kreutzmann, Susann. "Deutscher Bundestag - Bundestag stimmt Hartz-IV-Reform zu". Deutscher Bundestag (in German). Retrieved 2022-11-22.
  6. "Höhe des Hartz IV Regelsatzes bis 2022". Statista (in German). Retrieved 2022-11-13.
  7. "Verbraucherpreisindex und Inflationsrate". Statistisches Bundesamt (in German). Retrieved 2022-11-13.
  8. "ZEIT ONLINE | Lesen Sie zeit.de mit Werbung oder im PUR-Abo. Sie haben die Wahl". www.zeit.de. Retrieved 2022-11-22.
  9. "Arbeitslosengeld II: Voraussetzungen, Einkommen und Vermögen | Bundesagentur für Arbeit". www.arbeitsagentur.de. Retrieved 2022-11-22.
  10. "Drucksache 20/3873" (PDF).
  11. "German parliament approves new welfare scheme – DW – 11/10/2022". dw.com. Retrieved 2022-11-13.
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