Reform: Citizens’ Income: Mediation Committee accepts compromise

The citizens’ money is coming after all. The committee of the Bundesrat and Bundestag approved the solution between the traffic light parties and the Union.

Of the Mediation Committee The Bundesrat and Bundestag have reached an agreement on the introduction of citizen income. The agreement that was reached on Tuesday by the traffic light parties and the Union had been accepted, according to traffic light groups on Wednesday evening.

With that she can reform to replace the Hartz IV system and for a new unemployment benefit are expected to come into force as planned in January 2023 after the approval of the two chambers of parliament is now expected. Millions of people in need can hope for higher government benefits and more thorough support from the job centers in the new year.

Citizens’ allowance: parts of the reform will not come until July

Chancellor Olaf Scholz (SPD) promised earlier in the general debate in the Bundestag: “We ensure that work is worth more than at any time in a CDU-led federal government.” Citizens’ income is to start on January 1st with significantly higher standard rates in basic security.

However, essential parts of the reform are only to be July 1 come into force: The job centers are to draw up a plan with each and every unemployed person concerned, in which the intended path back to regular work is determined.

Scholz defended the reform against previous criticism from the Union. What the federal government from the SPD, Greens and FDP to the CDU and CSU is “obviously the image we have of the citizens of our country”. The Union had criticized various regulations as being too lenient and warned that this could be at the expense of taxpayers and contributors.

Citizens’ money: the government had called a committee after a dispute

In the current crisis, many people were not only worried about high energy and food prices, but above all about their jobs and the future of their business, said Scholz. “That shows one thing very clearly: the citizens want to work and they want to be able to make a decent living from their work.”

Because the Bundesrat, unlike the Bundestag, had not approved the draft by Labor Minister Hubertus Heil (SPD), the federal government had the Mediation Committee called. Tuesday’s compromise indicated that he would agree. The meeting lasted relatively short.

Under pressure from the Union, one “trust time” deleted from Heil’s draft. Contrary to what was originally planned, the unemployed should also have to accept possible benefit cuts in the first six months of receipt, for example if they do not apply for a job – contrary to what was agreed with the job center. The compromise also envisages that recipients of citizen income be granted 40,000 euros of their own assets. The traffic light had originally provided 60,000 euros.

Citizens’ allowance: districts and labor unions see the result as positive

The decision caused positive reactions in politics. The districts have welcomed the result of mediation on citizen income. The principle of promoting and demanding will be given more validity again, said District President Reinhard Sager of our editorial team: “Even if we stick to our very fundamental criticism of citizen income, many improvements have been achieved within the framework of what is politically possible in the mediation process,” said Sager about the compromise.

the Labor and Social Affairs Union, in which employees of the job centers are organized, also praised the compromise. “We think it’s positive that the trust period was cancelled. It would have given the wrong incentives,” said vbba boss Waldemar Dombrowski to the portal “The Pioneer”. She would have tempted younger people in particular to “not make an effort at first”. (afp/dpa/fmg)

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