Overview
- The government’s bill would move Ukrainians entering after 31 March 2025 from Bürgergeld or the planned Grundsicherung to the Asylbewerberleistungsgesetz.
- Those affected would receive roughly 20% lower payments, only tax‑funded basic medical care instead of statutory insurance, and their cases would shift from Jobcenters to municipal social offices, with a three‑month transition for current recipients after enactment.
- The debate coincides with a broader reform that replaces Bürgergeld with a stricter Grundsicherung emphasizing rapid job placement and tougher sanctions, a shift defended by CDU official Carsten Linnemann.
- DIW president Marcel Fratzscher and IAB researcher Yuliya Kosyakova warn the plan will hinder labor‑market integration by removing coordinated Jobcenter support and could raise medium‑term costs.
- Government projections foresee some federal savings on cash benefits but significantly higher administrative costs for states and municipalities, including about €862 million in 2026 and €394 million in 2027.