Tuesday, February 09, 2021
Families also benefit
Hartz IV recipients receive a Corona grant
People in need are hit particularly hard by the corona pandemic. To support them, the government is launching a grant. Another child bonus is also to come, but this time it is significantly smaller than last year.
The federal government has initiated the additional aid decided by the coalition for Hartz IV recipients and families because of the corona pandemic. According to the Federal Ministry of Labor, the cabinet decided by circulation procedure to provide a draft law by the coalition groups, which provides for a one-off payment of 150 euros for recipients of basic security. According to the Ministry of Finance, the new child bonus was also decided.
With the social package introduced by the Ministry of Labor, easier access to basic state security is extended. This particularly concerns the temporary suspension of the consideration of assets up to 60,000 euros for the first and an additional 30,000 euros for each additional member of a community of need. The social package also provides for the reimbursement of lunchtime meals, which are no longer due to the closure of schools and social institutions, to be extended.
Social service providers and welfare institutions should continue to receive financial support so that their existence is not endangered. According to the Ministry of Labor, the new law will come into force on April 1st.
Families get support
A drafting aid for tax regulations developed by the finance department was also decided by the cabinet in the circulation procedure. This includes the child bonus of 150 euros, which all recipients of child benefit should receive. Such a bonus of 300 euros at the time had already been given last year because of the difficulties caused by the Corona crisis for families.
The tax package also includes the extension of the reduced VAT rate for restaurants until the end of 2022. The options for tax loss carry-back are also being expanded for entrepreneurs. Here the maximum amount is to be doubled to ten million euros. All new regulations are to be discussed in the Bundestag for the first time this week.
"The corona pandemic is an enormous burden for the people in our country. People in particular need of help are hit particularly hard by the long-term measures and now need concrete support," said Labor Minister Hubertus Heil on the cabinet decision. "With the Corona surcharge of 150 euros, we are alleviating the burdens of the long-term measures for people who receive basic security." Heil emphasized that this support was important "to strengthen social cohesion in our country".
SPD parliamentary group leader Rolf Mützenich welcomed the fact that the legislative process for child bonuses and other social benefits could be initiated this week. However, he also pointed out that the SPD would also have liked to have a fundamental debate about the expansion of the basic security to a social citizen's allowance.
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