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Germany Sets 2026 Bürgergeld Freeze as Merz Presses Cost-Cutting Reforms

Advisers warn social contributions are heading toward 50 percent of pay, sharpening pressure for decisions this fall.

Overview

  • The Labour Ministry confirmed that standard rates will not rise on 1 January 2026, leaving €563 for single adults and €357–€471 for children, pending cabinet approval.
  • Labour Minister Bärbel Bas plans tougher enforcement for Bürgergeld recipients, including sharper cuts for missed appointments and closer case management.
  • Chancellor Friedrich Merz reiterated that the current social model is unaffordable, signaled “painful” changes ahead, and ruled out tax increases under the coalition pact in a ZDF interview.
  • A government commission on social-state reform begins work Monday with a mandate to deliver proposals by year-end.
  • Responses split: SPD figures cautioned against Merz’s rhetoric, social groups warned of hardship from a second consecutive freeze, and employers called reforms overdue; about 5.5 million people receive Bürgergeld and 2024 spending totaled €47 billion.