The Citizen's Income Act comes into force on 1 January 2023 and will be implemented in two stages: on the 1 January and to the 1 July 2023.

Citizen's income is a benefit provided by the welfare state to ensure a decent minimum subsistence level for those who cannot cover their living expenses from their own income. This may be because someone loses their job or has to close their business. Or because regular employment is not possible due to other circumstances, z. B. due to long-term or chronic illness. The coronavirus pandemic has shown how quickly people can find themselves in need through no fault of their own.

The citizen's income ensures the minimum economic subsistence level and enables participation in the cultural and social life of our society. This principle is not negotiable, but - as confirmed by the Federal Constitutional Court - stems directly from the first article of the Basic Law: Human dignity is inviolable.

No, no separate new applications need to be submitted. The procedure for authorising benefits remains unchanged. Applications for continued authorisation must continue to be submitted as before.

In order to ensure that the standard requirements are sufficient to cover living expenses, the standard requirements will be adjusted from 1 January 2024 increased.

Standard requirement level 1: Single person / single parent - € 563 (+ € 61)

Standard requirement level 2: Couples per partner / shared household - €506 (+ €55)

Standard requirement level 3: Adults in institutions (according to SGB XII) - € 451 (+ € 49)

Standard requirement level 3: Non-working adults (U25) in their parents' household - €451 (+ €49)

Standard requirement level 4: Teenagers from 14 to 17 years - € 471 (+ € 51)

Standard requirement level 5: Children from 6 to 13 years - 390 € (+ 42 €)

Standard requirement level 6: Children from 0 to 5 years - € 357 (+ € 39)

In addition to the standard needs level 3 to 6, children and young people receive an emergency child allowance of 20 euros per month until the introduction of basic child benefits.

The Citizen's Income is also intended to reinforce the fundamental experience that work also makes a difference to your wallet: the tax-free allowances for the income of school pupils, students and trainees, as well as federal volunteers and employees in the public sector. FSJ-The service providers will therefore be 1 July 2023 up to the mini-job limit (currently 520 Euro) is increased. This also applies during a three-month transition period between school and vocational training. Pupils can earn unlimited additional income during the holidays. And anyone who earns between 520 and 1000 Euro is also to be paid from the 1 July will be able to keep more of their income in 2023. The allowances in this area will be reduced to 30 per cent increased. Voluntary work while receiving the citizen's allowance will also be strengthened and promoted, and the exemption for voluntary work will be changed from a monthly to an annual allowance. You can take up to 3,000 euros of the expense allowance.

Anyone who is dependent on citizen's benefit in future will be allowed to keep their savings in the first year of receiving the benefit. Assets only have to be used if they are higher than 40,000 euros for the first person in the benefit community. For each additional person, further 15,000 euros protected. The actual costs for the flat are covered during this period, which is called the grace period. However, heating costs are granted to a reasonable extent in order to encourage economical use of energy. These regulations are based on what has been in place since the beginning of the pandemic and has proven its worth: The chances of finding a way into work are particularly high during the initial period of benefit receipt. This is why these regulations should also apply to the citizen's allowance - so that people can focus on finding a job instead of having to worry about moving to cheaper accommodation.

The Citizen's Income provides more support than before on the path to long-term, sustainable employment - instead of focussing on quick placement. The labour market has changed over the past twenty years: There is now a desperate need for well-trained labour and skilled workers. This is why the Citizen's Income programme also provides greater support for further vocational training: Those who decide in favour of training or retraining are to receive more intensive support. The principle of "training before a temporary job" applies. To this end, the so-called placement priority will be abolished. If necessary, it will also be possible to receive support for catching up on a vocational qualification for a shorter period of time (e.g. three years instead of two). The acquisition of basic skills (z. B. reading, maths and IT skills) is encouraged.

In future, holistic support (coaching) will be available as a new service to provide even more intensive support that "meets" the needs of benefit recipients - including in terms of location. Coaching can also take the form of outreach, training or employment support.

As a result of the discontinuation of the social labour market, the "Participation in the labour market" funding will now be permanently available to the job centres. It enables people who are particularly distant from the labour market to participate in society through publicly funded employment subject to social insurance contributions.

The following applies to the Citizen's Allowance: benefit reductions for breaches of duty and failure to register are 1 January 2023 from the start of benefit receipt, the moratorium on sanctions therefore ends at the end of 2022.

• If you fail to register, the standard requirement is reduced by 10 per cent reduced for one month. For the first breach of duty (e.g. refusal of a reasonable job offer), the standard requirement is reduced by 10 per cent for one month, in the event of a second breach of duty by 20 per cent for two months and in the final stage by 30 per cent reduced for three months.
• With the Citizen's Income, there will no longer be excessive reductions in benefits. The cases in which a reduction in benefits is justified will always be scrutinised, and particular hardship must be taken into account. The costs of accommodation and heating will remain protected, young people will receive counselling in the event of a reduction in benefits and will no longer have to expect higher reductions in benefits. We are thus implementing the requirements of the Federal Constitutional Court into law.

The following applies to the Citizen's Allowance: benefit reductions for breaches of duty and failure to register are 1 January 2023 from the start of benefit receipt, the moratorium on sanctions therefore ends at the end of 2022.

• If you fail to register, the standard requirement is reduced by 10 per cent reduced for one month. For the first breach of duty (e.g. refusal of a reasonable job offer), the standard requirement is reduced by 10 per cent for one month, in the event of a second breach of duty by 20 per cent for two months and in the final stage by 30 per cent reduced for three months.
• With the Citizen's Income, there will no longer be excessive reductions in benefits. The cases in which a reduction in benefits is justified will always be scrutinised, and particular hardship must be taken into account. The costs of accommodation and heating will remain protected, young people will receive counselling in the event of a reduction in benefits and will no longer have to expect higher reductions in benefits. We are thus implementing the requirements of the Federal Constitutional Court into law.

The Citizen's Income will be digital and easily accessible. This is also required by the Online Access Act (OZG). The aim is an easy-to-use digital application.

www.jobcenter.digtial

In addition to the standard rate, children and young adults up to the age of 25 will continue to receive the following supplementary benefits from the education and participation package with the Citizen's Allowance if the requirements are met.

• One-day excursions from school or day care centre
• School or day-care centre trips lasting several days
• Provision of personal school supplies (in two batches: 1 February and to the 1 August of one year)
• Transport of pupils to and from school
• Appropriate learning support (tutoring)
• Communal lunchtime meals at school, daycare centre or after-school care centre
• 15 euro lump sum for actual participation in social and cultural life in the community (only up to the age of 18)

The introduction of basic child benefits is a key issue in the coalition agreement and is intended to bundle a large number of existing social benefits into one simple support benefit. The aim is to reach more families in need of support. The plan is to introduce the basic child protection scheme on 1 January 2025, which is led by the Federal Ministry for Family Affairs, Senior Citizens, Women and Youth.

Yes, the existing additional requirements remain in place for

• Single parents,
• People with disabilities who receive benefits for participation in working life,
• People who need costly nutrition for medical reasons,
• Pregnant women from the 13th week of pregnancy and
• for households with decentralised hot water generation.

The additional requirement is granted as a lump sum in addition to the standard rate.

There is an entitlement to additional requirements for decentralised hot water generation because hot water in the household z. B. must be self-generated with an instantaneous water heater and are therefore not included in the operating costs of the rent. Each person in the community of need receives the additional requirement, whereby the amount is based on the relevant standard requirement levels of the persons.

• The standard rates will rise by between €35 and €53 depending on the standard needs level of the person entitled to benefits.
• The suitability of the flat is only checked after 12 months (waiting period). Until then, the actual costs of the flat are covered. This does not apply to heating costs, which are covered to a reasonable extent.
• In the first 12 months (waiting period), assets of up to 40,000 euros remain protected. This allowance increases by 15,000 euros for each additional person in the community of need.
• After the waiting period, an asset allowance of 15,000 euros applies for each person in the benefit community. Reserves for old-age provision and owner-occupied residential property are also better protected.
• The so-called placement priority (i.e. preferential placement in gainful employment) will be abolished. Further training and the acquisition of a vocational qualification are at the centre of the citizen's allowance.
• Reductions in benefits for breaches of duty and failure to register are possible from the start of benefit receipt; the moratorium on sanctions will be lifted at the end of 2022.
• In the event of a failure to register, the standard requirement is reduced by 10 per cent for one month. In the case of the first breach of duty, the standard requirement is reduced by 10 per cent for one month, in the case of a second breach of duty by 20 per cent for two months and in the final stage by 30 per cent for three months.
• Inheritances do not count as income, but as assets.
• The social labour market is being phased out.
• Minors who have to pay back benefits due to changes in their parents' income are only liable for this overpayment when they reach the age of majority if they have more than 15,000 euros in assets.
• Job centres waive reclaims up to a de minimis limit of 50 euros.
• Older persons capable of work who are entitled to benefits do not have to claim their old-age pension early.
• The special regulation for older people, according to which they are no longer recognised as unemployed after one year of benefit receipt, will be abolished.
• Basic benefits for jobseekers will no longer be either unemployment benefit II or social benefit, but will be standardised as citizens' benefit. However, the authorities still have until mid-2023 to adapt all forms.

• The tax-free allowances for all employed persons will be improved. If you earn between 520 and 1000 euros, you can keep 30 per cent of it. This means up to 90 euros more in your wallet than before.
• Young people are allowed to keep the income from school and student jobs and from vocational training, just like federal volunteers and those doing voluntary service up to the mini-job limit (currently 520 euros). This also applies during a three-month transition period between school and vocational training. Income from student jobs during school holidays is not taken into account at all. Volunteers can keep up to 3,000 euros of their annual expense allowance.
• The cooperation plan replaces the formal integration agreement. The cooperation plan is the "common thread" for the job search and is drawn up jointly by job centre employees and recipients of citizen's allowance in plain language. It does not contain any instructions on legal consequences. It will gradually replace the integration agreement by the end of 2023.
• If differences of opinion arise during the development of the cooperation plan, the new arbitration procedure can help.
• Citizens' allowance recipients can take advantage of holistic support/coaching as a new service. The coaching can also take the form of outreach, training or employment support.
• The following applies to further training:
  • Anyone who tackles a further training programme leading to a qualification receives a further training bonus for successful intermediate and final examinations. In addition, there is a monthly further training allowance of 150 euros.
  • For other measures that are particularly important for sustainable integration, there is a monthly citizen's allowance bonus of 75 euros.
  • It is possible to get more time to learn. Catching up on a vocational qualification can also be subsidised without being shortened if required.
  • Anyone who completes further vocational training will then receive unemployment benefit for three months in accordance with SGB III.
  • Those who need basic skills, for example better reading, maths or IT skills, can catch up on these more easily.
• The requirements for the accessibility of service recipients are adapted to the possibilities of modern communication.
• Maternity benefit is no longer counted as income.
• If you are undergoing medical rehabilitation, you no longer have to apply for transitional allowance and the citizen's allowance will continue to be paid.

If you receive a high back payment for heating costs, you can also apply for citizen's allowance for one month only.
This does not necessarily have to be an additional payment for heating costs. The purchase of fuels such as heating oil or pellets can also justify an entitlement to a citizen's allowance. You can submit the application easily and conveniently from home.

Online application

Further information on back payments for heating costs