Spending billions of citizens' funds: is it feasible to cut spending on Ukrainians?
Germany is set to make changes in its social welfare system for Ukrainian refugees, with the government proposing to reduce benefits for those arriving after April 1, 2025. This move aims to align new arrivals with other refugee groups and manage social welfare spending amid growing refugee numbers.
The proposed draft law seeks to shift Ukrainian refugees from the citizen's allowance (Bürgergeld) to the lower Asylum Seekers Benefits Act payments. This change would result in a monthly support reduction of around €100 per person. The draft law is expected to be approved by the end of 2025, following government and Bundesrat approval.
The CSU, led by Bavarian Prime Minister Markus Söder, advocates for even broader cuts. Söder wants all Ukrainian refugees, including those already in Germany, to be excluded from citizen's allowance payments and instead receive the reduced asylum benefits. He argues that Ukrainians currently receive higher support than other refugees or unemployed Germans, a situation he claims discourages work despite Ukrainians’ high qualifications.
The SPD, in coalition with the CDU/CSU, supports these benefit reductions for new Ukrainian arrivals from April 1, 2025. This is part of their shared strategy to manage social welfare spending amid growing refugee numbers and infrastructure pressure.
The CDU, another member of the governing coalition, supports tightening social assistance rules overall and reducing asylum applications for infrastructure capacity reasons. It aligns with the draft law proposal to cut benefits for new arrivals but has not publicly pushed to exclude all Ukrainian refugees from citizen's allowance like the CSU’s Markus Söder.
The debate reflects Germany’s ongoing challenge of balancing refugee support, social welfare sustainability, and political pressures amidst a large Ukrainian refugee population (~1.25 million).
Notable figures in the discussion include SPD leader Lars Klingbeil, who during his inaugural visit to the USA, stated that this proposal does not contribute to moving forward together in the coalition. Chancellor's Office chief Thorsten Frei (CDU) showed himself open to Söder’s proposal but stated that the coalition agreement can only be changed in agreement. Federal Minister of Economics Katherina Reiche made a general statement, saying that it must be the case that working pays more than staying at home.
The SPD is particularly keen to prevent abuse and criminal activities, with Wiese explaining that organized fraud or black work should not be tolerated. Economist Enzo Weber from the Institute for Employment Research IAB highlights the importance of the current citizens' income system for refugees, stating that it provides advice, placement, and qualification services.
Weber finds it problematic that there were initially long waiting times for language and integration courses for Ukrainian refugees in Germany. Many more Ukrainian refugees are in work in other European countries, according to Southern and other union politicians like Saxony's Prime Minister Michael Kretschmer (CDU).
The German Cities and Municipalities Association stated that municipalities could not bear the costs for Ukrainian refugees on their own and that the federal government and the states would have to fully cover the expenses if the switch were to happen. The Ministry of Social Affairs is confident that the planned innovations will bring savings overall from 2026, but the amount is open.
The debate continues, with Söder proposing to withdraw citizens' allowance for all refugees from Ukraine and provide them with lower asylum seeker benefits. SPD politician Dirk Wiese disagreed with the idea, stating that savings are overestimated and the administrative burden on municipalities would be enormous. The responsible Social Minister Barbel Bas (SPD) did not comment on Söder’s proposal, but stated that work on a draft bill began in May and is being pursued "promptly and with the necessary care."
The reform of the citizens' income is pending, as agreed in the coalition agreement, with benefits being more easily cut if someone consistently refuses to accept jobs. The Ministry of Social Affairs is confident that the planned innovations will bring savings overall from 2026, but the amount is open. For singles, the citizens' income has been at 563 euros per month since the last increase in 2024, while according to the Asylum Seekers Benefits Act, singles receive 441 euros.
- The proposed draft law in Germany aims to shift Ukrainian refugees from the citizen's allowance (Bürgergeld) to the lower Asylum Seekers Benefits Act payments, which would result in a monthly support reduction of around €100 per person.
- The CDU, another member of the governing coalition, supports the draft law proposal to cut benefits for new arrivals, but has not publicly pushed for all Ukrainian refugees to be excluded from citizen's allowance like the CSU’s Markus Söder.
- While the debate continues in Germany, Economist Enzo Weber from the Institute for Employment Research IAB highlights the importance of the current citizens' income system for refugees, stating that it provides advice, placement, and qualification services.
