Germany renames Bürgergeld to Grundsicherung and tightens job‑search sanctions

On 1 July 2026 Germany’s 13th SGB II amendment law comes into force, replacing the Bürgergeld with a rebranded “Grundsicherungsgeld”. The reform, driven by the coalition’s agreement and announced by Labour Minister Bärbel Bas, aims to shift the balance toward “more commitment, personal responsibility and participation” in the basic support system.

Key changes include: - Mandatory personal interviews at Jobcentres and higher enforcement of cooperation plans. - Immediate 30 % cuts for three months if claimants fail to apply for jobs or refuse training, with further reductions for missed Jobcentre appointments. - Early activation of parents with children from 14 months when childcare is available. - Cancellation of staged benefit reductions, removal of the asset‑free‑period, and linking asset allowances to age. - Introduction of rent‑cap measures, a municipal square‑meter ceiling, and a reporting duty to the Federal Office for the Fight against Illicit Employment. - Employer liability for illegal employment and expanded powers for the Federal Employment Agency to combat benefit fraud.

Around 5.2 million people receive the benefit, of whom 3.8 million are of working age. Monthly standard payments remain at €563, while the federal budget allocates roughly €41 billion for benefits and €10 billion for administration and integration measures in 2026. Social organisations have warned that stricter sanctions could disproportionately affect families with young children.