Overview
- Government drafts rebrand Bürgergeld as Basic Security and tighten obligations, including a stepped regime for missed job‑center appointments that moves from no cut to a 30% reduction and then full benefit removal, plus 30% cuts for three months for dropped training or missed applications.
- Costs for rent and heating would continue but be paid directly to landlords during sanctions, with hardship checks flagged for families and people with mental health conditions.
- The reform abolishes the asset grace period, requiring applicants to use savings down to reduced protection thresholds before qualifying, and prioritizes quick job placement over training.
- The Bundestag’s first reading is scheduled for January 15–16, committee work and hearings run into March, second and third readings are planned for early March, a Bundesrat pass is slated for late March, and the government aims for a July 1, 2026 start, with changes still possible in parliament.
- The Federal Social Court ruled that periods on unemployment insurance (ALG I) continue to count for pension contributions until reaching the regular retirement age based on actual benefit receipt, and separately confirmed that extended ‘Zurechnungszeiten’ from 2019 do not apply retroactively to existing disability pensions, leaving many pre‑2019 cases with up to about €185 less per month despite later partial top‑ups.