Successor to Hartz IV: the government wants citizen income of 502 euros

Successor to Hartz IV
Government wants citizen money of 502 euros

The traffic light parties want to replace basic security with citizen income. At the same time it should be recalculated. In this way, wage developments and inflation are taken into account. A first draft from the Ministry of Labor is now available.

According to a report, the federal government will set the standard rate for future citizen income at 502 euros. This emerges from a draft law by the Federal Ministry of Labor, reported the editorial network Germany (RND). This would increase the previous Hartz IV rates by more than 50 euros from January 1, 2023. In the calculation, the Hartz IV standard rates – as decided by the coalition committee – should also be adjusted to inflation. A spokeswoman for the ministry confirmed that the draft is currently being coordinated by the departments. The level of citizen income targeted by the ministry could still change.

In the first step, the standard rates are determined with the help of a mixed index, which takes into account 30 percent wage developments and 70 percent price developments. The data from the second quarter of the year before last and from the first quarter of the previous year are looked at.

If the increase were to be calculated using this mechanism alone, the standard rate for single adults would only increase from EUR 449 to EUR 469. But in a second step, a surcharge for the expected future inflation is now also included. This is done on the basis of a forecast using the latest statistical data available. This results in the greater increase in the standard rate for single adults to EUR 502, an increase of EUR 53 compared to the previous standard rate.

project in the coalition agreement

According to the RND, the draft law also lists increases for other groups: In the future, there should be a standard rate of 451 euros for adult partners. For children aged 14 to 17, 420 euros are provided. For 6 to 13 year olds it is 348 euros, for up to 5 year olds 318 euros.

In view of the high inflation and rising energy prices, the coalition parties SPD, Greens and FDP decided last weekend, as part of their third relief package, to take the inflation rate more into account when calculating the planned citizens’ benefit.

Citizens’ income is to replace Hartz IV benefits in the coming year. The three parties had agreed on this in the coalition agreement. Specifically, it says: “Instead of the previous basic security (Hartz IV), we will introduce a citizen’s income. The citizen’s income should respect the dignity of the individual, enable them to participate in society and be accessible digitally and easily.” In addition, according to the agreement, the benefit is to be paid in the first two years of occupancy without crediting the assets and recognizing the appropriateness of the current apartment. Furthermore, the protective capacity should be increased.

source site-34