Citizens' money: Standard rates will rise from 2024 to counteract inflation

Citizens' money: Standard rates will rise from 2024 to counteract inflation

According to a report by www.merkur.de, the federal government has decided to increase the standard rates for citizens' money on January 1, 2024 in order to counteract high inflation. The increase is around twelve percent and is intended to compensate for the rising cost of living.

The new standard rates for citizens' money from January 2024 are as follows:

• Alleinstehende und Alleinerziehende: 563 Euro (bisher 502 Euro)
• Volljährige in einer Bedarfsgemeinschaft: 506 Euro (bisher 451 Euro)
• Jugendliche von 14 bis 17 Jahren: 451 Euro (bisher 402 Euro)
• Kinder von 6 bis 13 Jahren: 471 Euro (bisher 420 Euro)
• Kinder von 0 bis 5 Jahren: 390 Euro (bisher 348 Euro)

Nationwide, 5.5 million people in need are currently receiving citizen's benefit, including 1.68 million who are unemployed. The reform is intended to make it possible to react more quickly to higher living costs and to compensate for inflation.

The impact of this increase on the market and the financial industry could be complex. On the one hand, the higher purchasing power of those in need could lead to increased demand for certain goods and services, which could have positive effects on the economy. On the other hand, the additional costs resulting from the increase in standard rates could lead to a higher burden on the state budget and possibly increased taxes.

It remains to be seen how the increase in the standard rates for citizens' benefit will affect the financial situation of those in need and the economy as a whole. The exact development will depend on various factors, including consumer reaction, inflation developments and government measures to offset the additional costs.