Germany Proposes Shift from Citizen Income to Asylum Benefits for Ukrainian Refugees

The German government is set to implement a significant change in the financial support system for Ukrainian refugees arriving in the country. Under a newly proposed law by Labor Minister Bärbel Bas, those entering Germany from Ukraine after April 1, 2025, will no longer receive Citizen Income but will instead be eligible for benefits under the Asylum Seekers Benefits Act.

This legislative shift is part of the government's strategy to save over one billion euros in expenditures related to Citizen Income. Notably, while the monthly allowance for single asylum seekers is currently set at 441 euros, the Citizen Income stands at 563 euros. However, despite this apparent cost-saving measure, the anticipated financial relief for the federal budget is expected to be minimal.

The Social Ministry's calculations indicate that for the year 2026, there may be a reduction of approximately 1.32 billion euros in costs associated with Citizen Income, basic security, and living assistance across federal, state, and municipal levels. Conversely, the additional expenses attributed to the Asylum Seekers Benefits Act are projected to reach around 1.375 billion euros. These costs will primarily impact regional governments and municipalities, although the federal government plans to provide them with blanket compensation.

The proposed legislation has been circulated among other ministries for review and must receive approval in the Bundesrat before it can become law, with a goal for finalization by year-end. Importantly, this change will not affect the more than 1.2 million Ukrainians who already sought refuge in Germany prior to the April 1 deadline.

According to the Interior Ministry, from April 1 to June 30, 2025, 20,955 Ukrainian nationals entered Germany for the first time amidst the ongoing conflict with Russia.

This legislative initiative is in line with commitments outlined in the coalition agreement. Recently, Bavarian Prime Minister Markus Söder called for a broader exclusion of all Ukrainian refugees from receiving Citizen Income, a position that has sparked considerable debate.