Overview
- The government’s draft would rename Bürgergeld as Grundsicherung and tighten conditionality, including an immediate 30% cut for three months for violations such as not applying for jobs or refusing courses.
- A staged missed-appointment system would apply: a second no-show triggers a 30% cut for one month and a third can suspend payments, with a prior hearing and safeguards for people unable to work or with mental illness.
- The reform ends the fixed asset grace period so wealth is counted from day one with age‑tiered exemptions, and it reinstates a job‑first placement priority that limits longer training unless clearly justified.
- Most provisions are slated to take effect on 1 July 2026, while reporting indicates the full cut for refusing a job could apply immediately upon promulgation.
- Unions and welfare groups warn of hardship and housing risks and dispute the fiscal case, as the draft projects about €86 million in 2026 savings versus earlier billion‑euro claims; the package also shifts many Ukrainians arriving after 1 April 2025 to lower asylum benefits.