Spending billions on citizens' funds: is it ethical to neglect assistance for Ukrainians?
The German government is planning to reduce welfare benefits for newly arriving Ukrainian refugees, aligning them with the lower social support provided under the Asylum Seekers Benefits Act. This shift in policy reflects a coalition agreement that came into effect on April 1, 2025.
Markus Söder, the Prime Minister of Bavaria and CSU leader, is advocating for an even more significant change, proposing to end citizen's allowance payments entirely for Ukrainians, including those who arrived before April 1, 2025.
Currently, Ukrainian refugees receive the citizen's allowance, which is more generous than the benefits provided to asylum seekers. The citizen's allowance covers a broader range of welfare support, ensuring a minimum living standard, while the Asylum Seekers Benefits Act provides only more basic support restricted to essential needs.
The proposed change translates to a reduction of approximately EUR 100 ($117) per person per month for new arrivals. This policy aims to encourage employment among refugees, as high benefits have been criticized for discouraging work despite refugees’ qualifications.
However, this change has not been fully implemented legally yet, so currently, even new arrivals still receive the citizen's allowance. The SPD, led by Lars Klingbeil, is not in favor of extending the change in benefits to Ukrainian refugees already in Germany.
The employee wing of the Union strongly opposes Söder's proposal, with Dennis Radtke criticizing broad-legged and loud-mouthed demands in the area of flight and asylum. The SPD is particularly pushing for preventing misuse and criminal activities, with Wiese emphasizing that organized fraud or black work must not be tolerated.
The German Association of Towns and Municipalities has stated that municipalities cannot bear the costs for Ukrainian refugees themselves. Around 6.3 billion euros flowed to Ukrainian refugees in 2024, according to the Social Ministry.
A reform of the citizen's allowance is pending, with benefits being able to be cut more easily if someone consistently refuses to take jobs. The number of people entitled to benefits in the citizen's allowance is decreasing, with more people being integrated into the labor market. The redesign of basic security is expected to further strengthen placement in work.
Federal Minister of Economics Katherina Reiche does not directly support Söder's proposal but emphasizes that work should pay more than staying at home. Economist Enzo Weber from the Institute for Employment Research sees a key disadvantage in switching from the citizen's allowance to the benefits system for asylum seekers: less advice, placement, and qualification for refugees.
The responsible Social Minister Barbel Bas did not comment on Söder's proposal but stated that work on a draft bill began in May. The SPD chairman Lars Klingbeil stated that Söder's proposal does not contribute to moving forward in the coalition.
In summary, the German government is transitioning from granting Ukrainian refugees the relatively generous citizen's allowance to offering them the lower asylum seeker benefits. This policy is politically contentious and not yet fully implemented for all refugees, with demands to extend cuts also to earlier arrivals.
- The financial implications of the proposed changes in welfare benefits for Ukrainian refugees could significantly impact the business sector, as a reduction in benefits may lead to increased employment among refugees, potentially boosting the economy.
- The ongoing debate about the reduction of benefits for Ukrainian refugees, particularly the proposal to end citizen's allowance payments entirely, is not just a matter of finance or politics but also has implications for general-news topics such as human rights and social justice.
