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Merz Says Deal Near on Bürgergeld Overhaul, With New Name "Grundsicherung"

Social organizations warn that a draft ending the one‑year housing grace period could push low‑income tenants out of their homes in a tight rental market.

Overview

  • Chancellor Friedrich Merz told ARD the coalition is "very close" to agreement on a benefits reform that will replace the Bürgergeld name with "Grundsicherung" and tighten rules on protected assets and cooperation with jobcentres.
  • A draft reported from the Labour Ministry proposes abolishing the housing Karenzzeit, creating an immediate relocation obligation for recipients in costly flats, which VdK and SoVD say risks evictions and homelessness.
  • Recent RTL2 social‑documentaries have amplified scrutiny by showing payment problems and behaviors among recipients, including a participant who said she received only €80 from the Jobcenter despite an approval for over €700.
  • Local media highlighted concrete administrative errors, including a Pirmasens couple who for months received both Bürgergeld and unemployment insurance, with about €3,400 a month and roughly €8,400 in overpayments before corrections.
  • Episodes also depict undeclared income and legal trouble, such as an 18‑year‑old claiming up to €3,000 a month from online sales without informing the Jobcenter and a woman facing an insurance‑fraud case with a possible two‑year sentence.