The traffic light government (SPD, Greens, FDP) did not introduce “citizen money” until January 2023; the CDU would abolish it again when it forms the federal government in 2025. CDU leader Friedrich Merz wants the CDU plan to truly transform citizens' money into a “new basic security,” but what exactly does the reform?
Citizens' money should become a “new basic security.”
What applies today? 18 years after the start of Hartz IV (unemployment benefit II), the citizen's benefit replaced the previous rules for the unemployed in Germany on January 1, 2023.
What would the CDU do? The Union fears that the current name of the former Hartz IV support is misleading and that many may compare it to an unconditional basic income.
What should change regarding waiting periods?
What applies today? Only after a waiting period of 12 months will the assets and suitability of the apartment be verified. Until then, actual accommodation costs will be covered. The waiting period does not apply to heating costs, which are covered to the “appropriate extent” from the beginning. In the first twelve months, assets of up to 40,000 euros are protected for the first person in the community of needs. For each additional person in the community of needs, this subsidy increases by 15,000 euros. These rules also came into effect on January 1.
What would the CDU do? The one-year waiting period established by the traffic light will be eliminated. The Union wants to introduce the complex asset control when the application is submitted. The CDU also wants to reduce the so-called protected assets. So that employment offices can better understand the financial situation of benefit recipients, a “complete data exchange” between the tax office, social welfare office, banks and security authorities should be possible. This is intended to prevent social fraud.
What sanctions should be applied?
What applies today? According to the principle of “promote and demand”, since 2005 the employment offices have disciplined Hartz IV beneficiaries who do not cooperate, cutting off their money. The Federal Constitutional Court had already severely restricted this sanctioning practice in November 2019, after years of criticism. More recently, there was a moratorium on sanctions. With the introduction of citizens' money the following applies: If an appointment is missed without an important reason, the standard requirement of one month can be reduced by ten percent. If someone does not apply for a job or does not participate in a course contrary to the agreement, the standard requirement may initially be reduced by ten percent for one month. In the event of a second breach of duty, there is a reduction of 20 percent for two months and, in the final stage, 30 percent for three months.
What would the CDU do? According to the CDU's plans, unemployed people who repeatedly fail to keep appointments at the employment office or fail to show up for three months should be punished more harshly by the “new basic security.” Specifically, in this case too the benefits should be canceled immediately. Only when those affected are cooperative and resume talks with the employment office will the money flow again. With tougher penalties, the unemployed should “make do quickly without the support of the supportive community,” the project says, but it is not so easy due to the ruling of the Constitutional Court.
What about subsidies for self-employed workers?
What applies today? Allocations were improved for all employed people as of July 1, 2023. If you have an income between 520 and 1,000 euros, you can keep 30 percent. According to the Federal Ministry of Labor, this means up to 48 euros more in your wallet than before. Up to the current mini-job limit of 538 euros, young people can keep income from school and student jobs, vocational training and pocket money from a federal voluntary service or a voluntary social year. Income from vacation work is not taken into account.
What would the CDU do? Assignments may change. Because the Union is striving to reform the limits on additional income. The goal is to create better financial incentives and for people to earn more money on their own and not rely solely on the new basic security.
What the CDU would change with the employment offices
What applies today? With citizens' money, the so-called placement priority was abolished. Until now, employment offices often placed unemployed people in unskilled jobs, which they then did not perform for long. Continuous training and the acquisition of a professional qualification are now more important. In addition, access to support for startups is facilitated.
What would the CDU do? The CDU is apparently planning a combination of further training and immediate access to the primary labor market. Therefore, the unemployed should also take up helping jobs and at the same time receive additional training. The prerequisite for this is an increase in the density of consultations and a reduction in the number of cases.