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Citizens' money 2025: Why do the standard rates remain the same despite falling costs?
In January 2025, citizens' money in Germany will remain unchanged. Find out everything about rule sets, background information and forecasts.
Citizens' money 2025: Why do the standard rates remain the same despite falling costs?
From January 2025, citizens' money, which was introduced in 2023 to replace the previous Hartz IV, will come into force with unchanged standard rates. This means that the monthly benefits remain the same for the different groups of recipients. Single people and single parents will continue to receive 563 euros, while couples will receive 506 euros per partner. Adults in institutions receive 451 euros, young people aged 14 to 17 receive 471 euros, children between 6 and 13 years receive 390 euros, and small children aged 0 to 5 years receive 357 euros.
How suedkurier.de reported, there is considerable criticism of citizens' money from the public and media. Critics fear that the standard rate does not provide enough distance from the minimum wage and thus creates incentives for people to take advantage of social benefits instead of full-time work. However, the ifo Institute does not raise these concerns. Around 5.6 million people in Germany rely on citizens' money as an essential source of livelihood.
Zero round and its background
The decision not to increase the standard rates in 2025 results from the zero round, which was decided by the Federal Cabinet in September 2024 and then by the Federal Council. Compared to last year, the amount remains constant, although the cost of living has fallen in some areas. The zero round is justified by the property protection regulation (§28a Paragraph 5 SGB XII), which excludes the withdrawal of benefits.
How federalgovernment.de noted, the standard requirement levels to ensure the subsistence level are reviewed and adjusted annually. The last adjustment took place on January 1, 2024, when the values were increased by over 12 percent. For 2025, the amount for single people will remain at 563 euros, as already mentioned. Support for personal school needs will also remain unchanged in 2025 at 130 euros in the first half of school and 65 euros in the second half of school.
The calculation of the citizen's allowance is based on a mixed index that is based 70 percent on price developments and 30 percent on wage developments. Forecasts for increasing citizens' money for 2026 are currently uncertain, while the German Bundesbank predicts an inflation rate of around 2.2 percent by 2026. The final decision on adjusting the citizen's allowance for 2026 will be made in 2025.