Federal Council agrees to a significant increase in citizens' money - the regulation will come into force in 2024

Federal Council agrees to a significant increase in citizens' money - the regulation will come into force in 2024

Based on the article “Citizen's money will increase by 12 percent from 2024: This is how much money is now available” on t-online.de, it can be seen that the Federal Council has agreed to an increase in citizen's money. The corresponding regulation from the federal government will come into force on January 1, 2024. Currently, over five million people in Germany receive citizen's benefit.

Citizens' money, which replaced the previous Hartz IV payments at the beginning of this year, will be increased by around twelve percent. Adults living alone will receive 61 euros more per month next year, bringing their citizen benefit to a total of 563 euros. The standard rates for young people aged 14 to 17 rise from 420 euros to 471 euros, for children between the ages of 7 and 14 from 348 euros to 390 euros and for younger children from 318 euros to 357 euros.

Another increase concerns the payment for personal school supplies, which will rise to 130 euros in the first half of 2024 and to 65 euros in the second half of school. The benefits from the Asylum Seekers Benefits Act will be increased accordingly.

The annual recalculation of the standard requirement, which is the basis for determining the citizen's allowance, takes inflation and rising net wages into account. The unusually high increase in citizens' money will burden the federal budget with an additional 4.3 billion euros in the coming year.

This increase in citizens' money is expected to have an impact on the market and the financial sector. On the one hand, the increased amounts can lead to increased purchasing power of citizens, which can have a positive effect on consumption and thus on demand. This, in turn, could lead to an increase in company sales and profits.

On the other hand, the additional burden on the federal budget means that either spending must be cut or revenues must be increased in order to avoid the budget deficit. These measures could have an impact on various sectors, such as the public sector, educational institutions or the labor market.

Overall, it is important to continue to monitor the effects of the increase in citizens' money on the market and the financial sector. It remains to be seen how citizens' purchasing power will develop and what measures will be taken to compensate for the increased spending. According to a report from t-online.de.