The brief era of the “Bürgergeld” is over. Instead, there will be a new basic income support system in the future. The German Bundestag has passed the law — thereby opening a new chapter in social policy.
For people who rely on assistance to make ends meet, the abolition of the citizen’s income is not good news. And not just for them. Many who are employed will also feel the effects of the reform.
“The new basic income support is a disastrous step backward in terms of social and labor market policy,” says Hans-Jürgen Urban, Social Affairs Director at IG Metall. “The increased pressure within the basic income support system is aimed at a vanishingly small group of so-called ‘total refusers,’ but it affects everyone.”
Urban’s warning: Millions of people and their families are now being placed under general suspicion without being given a realistic chance to gain qualifications or find work that provides a living wage. “A rigid sanctions policy and additional tightening of the asset exemption rules also affect workers who became unemployed through no fault of their own and cannot find a new job immediately.”
Lower social standards also indirectly put pressure on existing working conditions and wages. For IG Metall, this is a worrying sign in times of economic upheaval.
A Misleading Debate
The debate over the basic income is emotionally charged because there are some cases of abuse. In reality, however, this abuse affects only a very small proportion of the people who receive basic income.
- About 5.5 million people receive basic income.
- Of these, 1.8 million are children and adolescents—that is, they are not able to work.
- Over 800,000 are “top-up recipients”: They work but earn too little to make ends meet.
- Many others are unable to work due to illness, being single parents, or caring for family members.
- Only about 18,000 people were most recently subject to sanctions—that is, about half a percent of those affected.
Why the problem is often exaggerated
- The business lobby and certain politicians are exaggerating the issue of “total refusers.”
- The goal: to maintain pressure on workers and instill fear of relying on basic income support.
- Result: Less willingness to fight for better wages and working conditions.
- Defaming recipients of basic income distracts from the unequal distribution of wealth.
What Would Really Help
- Instead of more pressure, create better opportunities for employment.
- Measures: Language support, better child care.
- More resources for counseling, skills training, and continuing education.
IG Metall has launched an initiative for better, fairer social policy. All the details are available here.
