Title: Ukrainians Face Continued High Costs for New Supplies
In Germany, a significant discussion is underway regarding the welfare benefits provided to Ukrainian refugees. The Ministry of Social Affairs is currently drafting a bill that aims to adjust the benefits, moving from the current Bürgergeld (citizen's income) to asylum seeker benefits for new arrivals after April 1, 2025.
Currently, Ukrainian refugees in Germany receive Bürgergeld at €563 per month, a generous amount that also includes coverage for rent and health insurance. However, this substantial fiscal cost has raised concerns among government officials and state leaders, leading to discussions about the sustainability and cost of refugee aid.
Under the proposed change, the welfare benefits for new arrivals would be reduced to around €441 per month, a difference of approximately €100 per person per month. It is important to note that this change will not affect those Ukrainian refugees already residing in Germany and receiving Bürgergeld.
The total welfare payments to Ukrainians in Germany amounted to around €6.3 billion in 2024, a significant share of the overall welfare budget. This context explains why Germany is contemplating reducing welfare benefits for new arrivals, balancing generous aid with fiscal sustainability concerns.
The draft bill for this change is currently under departmental consultation. If approved, it would mark a shift in the so-called change of legal status, a plan by the black-red coalition. The additional costs for benefits under the Asylum Seekers Benefits Act are estimated at 1.375 billion euros in 2026.
Despite these changes, the Ministry of Social Affairs and politicians predict no major savings from this shift in welfare benefits for Ukrainian refugees. This is because the savings from the reduction in Bürgergeld will be almost offset by the additional costs for asylum seeker benefits.
As of May, around 332,000 Ukrainian refugees were in employment in Germany. This figure suggests that many refugees are actively contributing to the country's economy, which could potentially mitigate the fiscal impact of the proposed changes.
The debate surrounding the proposed changes reflects the complex balance between providing generous aid and ensuring fiscal sustainability, a balance that is being actively discussed among government officials and state leaders in Germany.
The debate about the proposed changes in welfare benefits for Ukrainian refugees in Germany is influenced by both the financial implications and the national economy. The shift from Bürgergeld to asylum seeker benefits for new arrivals after April 1, 2025, could potentially reduce welfare payments by approximately €100 per person per month, but politicians and the Ministry of Social Affairs predict minimal savings due to offsetting costs. Meanwhile, around 332,000 Ukrainian refugees are employed in Germany, indicating a significant economic contribution that could mitigate the fiscal impact of the proposed changes. This complex balance between generous aid and fiscal sustainability is a hot topic in German politics and business circles.
