Overview
- The government draft would rename Bürgergeld to “Grundsicherungsgeld” from July 2026 and give Jobcenters stronger tools to enforce claimant cooperation.
- Paragraph 22(4) sentence 4 would recognize at most prior rent after a within‑area move deemed non‑required, which social‑law experts warn amounts to a de facto cap that could face legal challenges.
- The scientific advisory board to the Finance Ministry proposes overhauling income rules so recipients keep 30 euros per 100 euros earned while fully offsetting Minijob earnings up to 556 euros and streamlining benefits.
- Fiscal expectations diverge sharply: Chancellor Friedrich Merz touts savings of roughly 10 percent (about 5 billion euros), but the Labor Ministry projects just 86 million euros in 2026, with researchers noting major savings require moving hundreds of thousands into work despite weak labor‑market conditions.
- Political pushback is mounting inside the SPD, with a members’ petition submitted, as the reform remains a draft in the legislative process targeting mid‑2026 and Wohngeld continues to operate separately with no scheduled increase for 2026.