Germany launches Grundsicherung for job seekers, replacing Bürgergeld

Effective 1 July 2026 Germany will replace the Bürgergeld with a new "Grundsicherung für Arbeitsuchende". The reform tightens sanctions – a missed appointment triggers a 30 % cut to the regular benefit for three months, and an intentional refusal to work can lead to a total loss of the regular benefit, while housing costs continue to be paid directly to landlords. Asset protection thresholds are lowered: exemptions start at about €5 000 for those under 30 and rise to €20 000 for people over 50, ending the previous €40 000 grace period.

The Bundestag approved the changes in March 2026 with a 320‑268 vote after a compromise between the Union and the SPD. Critics, including the VdK and DGB, warn of heightened hardship and risk of homelessness. Simultaneously, several German courts (Marburg, Halle, Stuttgart) have ruled that reductions in asylum‑seekers' benefits under § 28a SGB XII are unlawful, ordering that 2024 benefit levels be maintained until a new upward revision occurs.

The reform has provoked political backlash; in North Rhine‑Westphalia the regional minister defended the changes amid protests, and the new name “Grundsicherung für Arbeitsuchende” is being promoted as synonymous with the former Bürgergeld.