BFederal Minister of Labor Hubertus Heil has announced a significant increase in Hartz IV rates – in the course of the planned introduction of the new citizens’ allowance. “With the citizens’ allowance, we will de-bureaucratize the system and ensure that people in need are reliably protected,” said the SPD politician to the editorial network Germany. “I will introduce the bill this summer and there will be a significant increase in rule rates early next year.”
The welfare state must ensure that people without financial reserves can make ends meet. “I am determined to change the way we calculate the ruleset. The previous mechanism lags too much behind the price development.” Heil had already suggested in May to change the calculation so that the standard rates for citizen income per person and month are 40 to 50 euros higher than in the previous basic security.
The citizens’ allowance announced by the traffic light coalition is intended to replace the current Hartz IV system.
No more grants for high earners
In addition, as in the past, the Minister of Labor again urged that only people with low and middle incomes should be considered in future relief packages. “Because the state options are not endless, it is about targeted relief,” he said. He sees no scope to relieve people with high incomes. “For them, higher prices are annoying, but not an existential problem,” says Heil.
“In this serious crisis, we have to focus our help on people with lower and middle incomes. This is the only way we can keep our society together in difficult times.” In addition, the state must be able to continue investing in infrastructure, education and research.