Merz government: Tougher citizen's income not until 2026 – but Ukrainians in the crosshairs even earlier

It was supposed to happen quickly, very quickly, in fact. Even during the election campaign , Friedrich Merz was drumming up support for a swift reform of the citizen's income. Tougher rules, stricter sanctions, faster integration into the labor market – that was the plan. Now it's clear: the coalition is in place, Merz is chancellor, but the reality is more complicated.

The major welfare reform, which CDU General Secretary Carsten Linnemann calls "the most important since Agenda 2010," will be delayed. It could come into effect in 2026 at the earliest, according to the politician, likely in the spring. However, the coalition is moving quickly on the citizen's allowance for Ukrainians, which it intends to abolish as soon as possible.

Last week, the new coalition committee met for the first time. The result: an immediate program, ideally implemented before the summer break in July. Priorities include "measures for more growth and less migration, as agreed in the coalition agreement." On the agenda are further strict border controls , the abolition of so-called "turbo-naturalization," and limited family reunification. And also the transfer of legal jurisdiction for Ukrainian refugees from the citizen's income to the Asylum Seekers' Benefits Act.

The latter could actually come this year or early 2026, retroactive to April 2025, according to sources in the Berlin newspaper, according to CDU/CSU. Specifically, this means for Ukrainian refugees: They would receive €122 less per month. Single people currently receive a standard rate of €563 per month in the citizen's allowance, while asylum benefits for one person amount to €441. In addition, the money will be paid out nationwide via payment card in the future, and the standard rate will be reduced for those living in collective accommodation or sharing an apartment with a partner. The plans state that housing costs will be covered.

Jobcenter: Until the law changes, everything will stay the same

But until then, everything will continue as usual. A spokesperson for the Federal Ministry of Labor confirmed to the Berliner Zeitung: "The details of the planned change of legal jurisdiction for refugees from Ukraine will be subject to further legislative proceedings. For people currently coming to Germany, the existing legal situation will apply until the legislative process is completed and comes into force."

Job centers – for example, in Berlin and Brandenburg – are still hesitant. As long as the legal situation doesn't change, everything will remain as it is, a spokesperson told the Berliner Zeitung. They are particularly skeptical about the idea of ​​retroactively removing Ukrainian refugees from citizen's allowance payments as of April 1. Since the benefits are currently still being paid, everything would have to be recalculated at great expense – an enormous administrative burden with no savings, according to the authorities.

Citizens' income: Union wants to maintain tough sanctions for total objectors

The new citizen's income, which Merz had already announced during the election campaign, is also a matter of waiting. Although the legislative process is scheduled to begin before or possibly after the summer break, implementation will take time, as the coalition partners now admit.

The new federal government, comprised of the CDU/CSU and SPD, wants to transform the citizen's allowance into "a new basic security for job seekers" and significantly tighten the rules. By making it more stringent, meaning higher demands on the unemployed, as well as faster and harsher sanctions, including the complete withdrawal of benefits, the aim is to get as many people as possible into work. Once celebrated as a social policy milestone, the citizen's allowance is intended to initiate a paradigm shift in labor market policy. Away from "support" and toward more "demand" – with far-reaching consequences for hundreds of thousands of those affected.

The CDU/CSU, in particular, wants to maintain tough sanctions for total refusers . "If someone is able to work and repeatedly rejects a job offer, the state must assume that they are clearly not in need," Linnemann said. "Then the citizen's allowance must be canceled." There is already the option of completely canceling the standard citizen's allowance for two months. However, job centers will continue to pay rent and heating costs.