Rising Inflation and Poverty in Germany: Social Associations Demand Citizens’ Money Increases and Emergency Aid

Citizens’ money is intended to ensure more social justice in Germany. This is basic security for people who need state support for various reasons. However, massive inflation is making it difficult for a large part of the population to cope financially and low-income people in particular are increasingly falling into poverty.

Social associations have been warning about the consequences of this development for some time and are calling on the federal government to make adjustments to citizens’ benefits. This is mainly about a permanent increase in the amounts; associations are also demanding monthly emergency aid of 100 euros as well as subsidies for electricity and electrical appliances. In particular, the Citizens’ Money Association for Social Life and the Paritätische Wohlfahrtsverband are committed to counteracting the increased cost of living.

Citizens’ money: Social associations demand increases and emergency aid

The Paritätische Wohlfahrtsverband is campaigning for an increase in the standard rates for basic security. According to calculations by the internal research center, state benefits would have to be increased significantly from the current 502 euros – to at least 725 euros. This amount is necessary in order to be able to “effectively protect people in Germany from poverty”. The association is campaigning for an increase in the standard rate of 276 euros, plus full coverage of electricity costs. According to the current regulations, these are to be paid from citizens’ money. “Whether Hartz IV or citizen’s benefit, the actual calculation method has not changed. The benefits remain cleverly understated, are not sufficient at all and do not reflect the reality of people’s lives,” said Managing Director Ulrich Schneider.

In 2024, the current citizen’s benefit payments are to be increased, but Federal Finance Minister Christian Lindner (FDP) recently opposed an increase in social spending. As of July 1, 2023, adjustments to the current Citizens’ Benefit Ordinance came into force, which also affect possible sanctions.

Citizens’ money 2024: By how many euros will the standard rate increase?

At the end of 2022, the federal government published the 14th subsistence level report. The document, which is reissued every two years, stipulates the need for an increase, which was decided by the cabinet. The 14th report assumes a so-called standard requirement level for single people of 6,024 euros for the year 2023 and 6,444 euros for the year 2024. According to the report, a level of 11,592 euros is forecast for married couples in 2024.

According to this calculation, next year the standard rate for single people would increase from 502 euros in 2023 to 537 euros in 2024. For adult partners, the standard rate will increase from 451 euros in 2023 to 483 euros in 2024.

However, the implementation of the SPD, Greens and FDP does not go far enough for many social experts. In addition, social associations are calling on the traffic light coalition to make a compensation payment of 100 euros. This means that every recipient of a community benefit receives an extra 100 euros per month.

Citizens’ money: 100 euros in emergency aid? Electricity and electrical devices are also an issue

Increasing basic security is also a concern of the Citizens’ Money Association for Social Life. The association is demanding from politicians: “100 euros compensation payment per person, this must be paid as emergency aid for every citizen benefit recipient.” In addition to the proposed emergency aid, social associations are also appealing for the removal of electricity costs from the standard rate in order to enable a humane life for those receiving citizens’ benefit.

The demand sometimes includes full reimbursement of the costs of large electronic devices by the nationwide job centers. The decisive factor is the increased prices, especially in the food sector. An evaluation by the Federal Statistical Office shows the drastic inflation: especially for food, prices would have increased by a whopping 17.2 percent within a year in spring 2023.

Incidentally, this also poses major challenges for the German middle class: food banks against poverty and food waste see themselves at their limits in this country, like them German press agency describes: Accordingly, the number of middle class people who are dependent on cheap food is growing. “The boards are a seismograph for social changes,” explains Sabine Werth, who founded Germany’s first board 30 years ago in Berlin dpa.

In order for those receiving citizens’ benefit to be able to lead a decent life even in the midst of price increases, other measures are necessary in addition to an increase and an inflation compensation payment, such as: Citizens’ Money Association for Social Life eV emphasized. For example, the social associations are demanding that the job center take over the purchase of large electrical appliances in the future. In addition, it should no longer charge or withhold citizen’s money benefits for the next two years. And job centers should also refrain from making cuts due to housing costs for the next two years.

2024-01-08 20:14:19
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