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Germany Unveils Draft to Replace ‘Bürgergeld’ With Stricter ‘Grundsicherung’

Advisers to the government urge case-by-case placement instead of a strict return to a placement-first rule.

Overview

  • Labor Ministry draft for 2026 would scrap the 12‑month asset grace period, apply immediate asset checks with age‑tiered exemptions, and reintroduce a standard 30% sanction with possible full benefit withdrawal in defined cases.
  • The plan revives a placement‑first approach that limits access to longer training; the Economics Ministry’s scientific advisory board backs tougher asset rules and sanctions but rejects a rigid Vermittlungsvorrang in favor of individualized case management.
  • Welfare organizations and opposition figures warn of legal and social risks, including potential harm to children’s benefits and greater housing instability when payments are cut.
  • Fiscal gains are contested: while leaders touted savings in the billions, reporting on ministry projections cites only tens of millions in 2026 and 2027, with possible later cost increases from administration and oversight.
  • Housing support remains a key buffer as Wohngeld was raised about 15% from January 1, 2025, is paid in advance at the end of the prior month under §26 WoGG, and is subject to income and wealth limits; owners may qualify via the Lastenzuschuss.