Increased citizen's allowance disbursements reach 47 billion euros - Citizens' funds attributed to payments elevate to an enormous 47 billion euros
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In Germany, the Citizen's Income program has seen a significant increase in payments, with around €46.9 billion distributed to around 5.64 million beneficiaries in 2024. This includes approximately €29.6 billion for income support, €13 billion for rent and heating assistance, and €10 billion for job integration and administrative costs [3].
The program has experienced rate increases of approximately 11% in 2023 and 12% in 2024, driven by inflation. However, a freeze has been announced for 2025 by the new government [1].
Among the recipients, around 22.2 billion euros, or 47.4 percent, were paid to people without a German passport [1]. This includes several hundred thousand Ukrainians and their children who fled to Germany due to the Russian war of aggression [2].
However, the Citizen’s Income program has been subject to criticism due to concerns about welfare fraud and exploitation, particularly involving foreign recipients. Labor Minister Bärbel Bas has highlighted "mafia-like structures" where exploitative networks recruit individuals from abroad, employ them illegally, and support illegal welfare claims [3].
This situation leads to a combination of undeclared labor and welfare fraud, with some individuals working part-time jobs (often paid partially in cash) and supplementing income through Citizen’s Income benefits [3]. The employment rate among Ukrainian refugees is increasing, from 24.8 percent in October 2023 to the latest 33.2 percent [1].
Integration with language courses and qualifications should be faster, according to Weber, the Federal Labor Minister [1]. Weber also suggests that people receiving Citizen's Income should receive support for starting in the labor market [2].
The Federal Court of Auditors has criticized shortcomings in the mediation of people receiving Citizen’s Income [3]. While the program improved benefit amounts compared to previous social security systems and intended to respond to inflation and low-income hardship, analyses still find the Citizen’s Income inadequate for various household types, particularly single-parent households [1].
The growing expenditure on Citizen’s Income presents a significant fiscal burden, with a €5 billion increase in funding from the previous year reflecting rising social costs [3]. Despite these challenges, the German Trade Union Confederation emphasizes the need for immigration, opposing the demands of the AfD [2].
In summary, while the Citizen’s Income program in Germany has seen a substantial increase in payments, it faces challenges of adequacy and fraud, especially among foreign recipients. These issues impact both Germany’s labor market — by blending legal and illegal work with welfare support — and public finances through rising program costs [1][3].
The Community and Employment policies in Germany are under scrutiny due to concerns about welfare fraud and exploitation within the Citizen's Income program, particularly among foreign recipients. This situation has led to a combination of undeclared labor and fraudulent welfare claims, significantly impacting both the country's labor market and public finances, including the finance sector of the business world. Moreover, the General-News Media have reported on this issue extensively, linking it to politics, with the German Trade Union Confederation advocating for immigration and opposing the demands of parties like the AfD.
