Ukrainians face no price reductions in new supply
The German government is considering a significant change to the benefits provided to Ukrainian refugees, shifting from citizen's income to benefits under the Asylum Seekers Benefits Act. This move, aimed at reducing government welfare expenses, has sparked debates and concerns among politicians and the public.
Approximately 6.3 billion euros were paid out to Ukrainians in 2024, a substantial amount that the government hopes to cut down. The proposed change would result in significant financial savings for the German government, but it would also lower the monthly support that newly arriving Ukrainian refugees receive by about €100 per person.
Currently, single Ukrainian adults receive about €563 per month in citizen's income, which includes rent and health insurance coverage. Switching to asylum seeker benefits would cut this by roughly €100 monthly per person. The government expects to save funds by applying the less generous asylum benefits, which typically cover monthly basic needs but at a lower rate and often exclude some social supports.
However, the policy change involves legislative procedures and coordination across federal and state levels, potentially impacting welfare administration costs and refugee integration processes.
Some politicians, like Bavaria’s Markus Söder, argue that reduced benefits might encourage Ukrainian refugees to seek employment rather than rely on welfare. On the other hand, Social Minister Barbel Bas rejects this proposal, stating that these changes mean "in fact, it is less of a saving for the overall budget."
Bas also predicts no major savings from these changes, a sentiment echoed by previous predictions. The draft bill from the Ministry of Social Affairs reveals that the planned provision of new Ukrainian refugees with benefits for asylum seekers instead of citizen's income brings practically no savings for the federal government.
As of May, around 332,000 Ukrainian refugees are employed in Germany, a promising sign of integration. However, around 21,000 Ukrainian refugees who arrived since April 1 may potentially fall under the new regulation.
The additional costs for benefits under the Asylum Seekers' Benefits Act are estimated at 1.375 billion euros. These will arise at the state and local levels, but they are to be compensated by the federal government on a flat-rate basis.
The changes are currently under interdepartmental consultation before being presented to the cabinet and the Bundestag. The final decision and its implications for the Ukrainian refugees in Germany remain to be seen.
[1] Social Welfare News [2] Refugee Support Network [3] German Government Website [4] Bavarian Government Website [5] European Commission Website
- The debate over the German government's proposal to increase the financial savings on Ukrainian refugee benefits through the Asylum Seekers Benefits Act is a topic of intense discourse across both politics and general-news, with contrasting opinions from politicians like Bavaria’s Markus Söder and Social Minister Barbel Bas.
- The estimated 1.375 billion euros burden of benefits under the Asylum Seekers' Benefits Act, payable at the state and local levels, has sparked concerns for both social welfare news and the refugee support network, questioning whether these changes would indeed lead to significant financial savings for the German government.
