With the increase in citizen’s income on January 1, 2024, 5.5 million people in need should receive around 12 percent more money on average. “The standard rates will rise significantly for all generations who are in need on January 1st,” said Labor Minister Hubertus Heil (SPD) on Tuesday in Berlin. The corresponding ordinance is to be adopted in the near future. What is important for those affected:
How high is the citizen’s income today – and in the coming year?
Since the beginning of the year, single people have received 502 euros per month – from the beginning of 2024 it should be 563 euros. Adults living with partners have received EUR 451 so far – EUR 506 in future. For young people between the ages of 15 and 18, 420 euros flow – in the future it should be 471. Children from the beginning of the 7th to the end of the 14th year receive 348 euros – in the future it should be 390 euros. For children up to the age of 6, it is currently 318 euros – from 2024 it will be 357 euros.
How much will the increase cost?
Around 4.3 billion euros, as Heil said. When asked about the financing in view of the debt brake and the pressure to save, the SPD politician pointed out that the citizens’ allowance was “a legislative achievement”. With the expected resolution of the Bundestag on the federal budget at the end of November, the necessary funds should then be there.
How is the citizen’s allowance calculated?
It is looked at how high the need is for food, clothing, personal hygiene and household goods and what kind of participation in social and cultural life is achieved. This is how the rule set comes about. Of the 502 euros for an adult, around 174 euros go to food and drink, around 49 euros to freedom/entertainment/culture and 45 euros to telecommunications/post. The standard rates of citizen income are calculated using statistically recorded data from around 60,000 households.
Why are the citizen benefit rates being increased now?
The standard rate is adjusted annually to reflect price and wage developments, with prices accounting for 70 percent and wages for 30 percent. Heil believes that criticism from the past that the standard rate increase has often lagged behind the development of inflation is justified. In 2022, for example, an increase of 3 euros to 449 euros for single adults caused disappointed reactions. With the citizen income reform, inflation will now be taken into account “better and more promptly”, according to Heil. The rates had already been increased by around 50 euros at the beginning of the year with the start of the citizens’ income reform.
Is the increase enough for those affected?
For Heil, the standard rates are “more inflation-proof and therefore also more crisis-proof” due to the major adjustments. The managing director of the Paritätisches Gesamtverband, Ulrich Schneider, says: “The current loss of purchasing power is just about compensated for. There can be no question of an improvement in performance.” Need is calculated small. And the president of the social association VdK, Verena Bentele, criticizes the increase as “much too late” because the high electricity and gas prices in particular would eat up the money completely for those affected.
What is the citizen money?
At the beginning of the year, citizen’s income replaced unemployment benefit II. It is intended to secure the livelihood of people who can work but whose income is not enough to live on. At the same time, those affected should be helped with advice and training and further education to regain a foothold in the labor market. The citizen’s allowance was the largest social reform of the traffic light coalition and has taken the place of the previous Hartz IV system.
Who is entitled to apply for citizenship benefit?
You can get it if you are able to work, at least 15 years old, not of retirement age and if your income is below the subsistence level and you cannot therefore make a sufficient living from your own means. If you live with someone who is able to work and is entitled to benefits, you can also receive citizenship benefit if you are not able to work. You apply for citizens’ allowance at the job center, which can also be done digitally (www.jobcenter.digital).
What else is paid?
The costs for accommodation and heating are reimbursed in addition to the amounts of the standard rate. Within a waiting period of 12 months, accommodation needs are recognized in the amount of the actual expenses. If you are pregnant, you are entitled to an additional requirement of 17 percent of the standard rate. Certain other additional requirements can also be asserted.
What can you do if the application for citizenship benefit is rejected?
You can file an objection or complain. You can get support from voluntary welfare associations, for example. An objection must be submitted to the job center with justification. Last year, even before the citizens’ income reform, about a third of the objections were successful.
When will the citizen’s allowance be paid out?
The citizen’s income payment takes place month after month. The benefit must be credited to the recipient’s account by the 1st of each month. However, the exact payment date of the citizens’ benefit is variable.
Can you get citizen benefit if unemployment benefit is not enough?
Yes, if the unemployment benefit is not enough for living expenses and accommodation costs, you can also apply for citizen benefit and top it up with it. (dpa)