Under the new rules, recipients will face tougher sanctions if they fail to meet their obligations to the Jobcenter. Missing appointments, refusing job offers, or failing to cooperate during applications and training measures will be penalised more severely than before/Photo: AfricanCourierMedia

Germany to Replace Bürgergeld with a Stricter Unemployment Benefit System

Germany is preparing to overhaul its welfare system in a move that will have far-reaching consequences for millions of benefit recipients. The planned abolition of the Bürgergeld (Germany’s basic unemployment benefit and the successor to Hartz IV) and its replacement with a stricter “Grundsicherung” marks a significant shift in social policy, with tougher sanctions and new obligations for claimants. In this article, Sola Jolaoso explains what the reform means and what changes are being proposed as the law moves toward parliamentary approval.

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The German federal cabinet has approved a far-reaching reform of the welfare system that will significantly affect millions of people, including many Africans living in Germany. Three years after its introduction, the Bürgergeld is set to be abolished and replaced by a stricter system known as Grundsicherung (basic security). The draft law is expected to be debated in parliament in January 2026 and, if approved, will enter into force on 1 July 2026.

Around 5.5 million people currently receive Bürgergeld. Under the new rules, recipients will face tougher sanctions if they fail to meet their obligations to the Jobcenter. Missing appointments, refusing job offers, or failing to cooperate during applications and training measures will be penalised more severely than before.

One of the most controversial changes concerns Jobcenter appointments. If a recipient misses three invitations, payments can be completely suspended, including the payment of rent. Before such a total cut, however, Jobcenter staff must give the person an opportunity for a personal hearing, such as a phone call or home visit. People with serious mental health conditions are to be protected from losing their benefits entirely.

Sanctions for other violations are also being tightened. If a recipient fails to apply for jobs, drops out of training, or shows deliberate non-cooperation—such as intentionally sabotaging a job interview—their monthly benefit (currently €563 for a single adult) can be cut by 30 percent for three months, instead of the previous 10 percent reduction.

Another important change affects savings and assets. The current fixed grace period during which personal assets are protected will be abolished. In future, recipients will generally be required to use their own income and savings first before receiving support. The amount of protected assets will depend on a person’s age.

The reform has sparked strong criticisms from social organisations such as the Paritätischer Wohlfahrtsverband, Arbeiterwohlfahrt (AWO), and Diakonie, which warn that harsh sanctions could threaten the basic subsistence of vulnerable groups and stigmatise unemployed people. Critics accuse the government of replacing trust with suspicion.

Within the governing parties, opposition is also growing. Sections of the SPD base have launched a members’ initiative against the reform, while the opposition Left Party and the Greens describe it as an attack on the welfare state. The government, however, insists that “those who cooperate have nothing to fear” and that the focus remains on getting people into work.

For beneficiaries of unemployment benefits, the reform underscores the importance of staying reachable, attending appointments, and actively cooperating with employment and training measures in order to avoid severe financial consequences.

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