German cabinet approves no rise in citizen's benefit in 2026

Around 5.6 million recipients of Citizen's benefit (Bürgergeld) will face another freeze in the coming year. The federal cabinet approved on Wednesday a regulation from the SPD-led Federal Ministry of Social Affairs, according to which the Citizen's benefit rates will remain unchanged in 2026. There was also no increase in 2025.

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The German government is legally required to review Citizen's benefit annually based on specific criteria and adjust it if necessary. Benefit rates had risen sharply in 2023 and 2024 because they disproportionately accounted for inflation. In 2025, due to falling inflation, a freeze was implemented. For 2026, the ministry stated that “no room for adjustment” arises from the current price trends and net wage developments. The Bundesrat must still approve the regulation, with a vote scheduled for October 17.

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Recipients will therefore have to manage with the same amount of state support next year. Single individuals will continue to receive 563 euros per month. Different rates apply to couples, children, teenagers, and those in residential facilities, but these will also remain unchanged in 2026.

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The CDU-SPD coalition has planned a reform of Citizen's benefit in their coalition agreement. Among other measures, sanctions for those who refuse to work, will be tightened. This comes against the backdrop of rising costs and budgetary pressures in the federal government. Chancellor Friedrich Merz (CDU) set a target to save ten percent of the annual Citizen's benefit expenditure of around 5 billion euros, though the SPD expressed skepticism about whether such savings are achievable.

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Sharp criticism came from the Left Party. Social policy expert Cansin Köktürk stated: “The citizen's benefit is not sufficient for a life in dignity. Instead of finally securing the subsistence minimum, a duty under the Basic Law, the federal government is, in effect, implementing the second reduction in a row.” She added: “Rapidly rising food prices and rents are pushing millions of people deeper into poverty.”

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