State Fund Proposes 2026 Cessation of Citizen's Fund Circulation

In a recent statement to Bild, the Federal Minister for Labour and Social Affairs, Bärbel Bas (SPD), has proposed no change in unemployment benefits for the coming year, starting from January 1, 2026. This decision follows a pattern set in 2025, where there was also a zero increase in unemployment benefits.

The standard need level for single unemployment benefit recipients will remain at 563 euros per month, and for children receiving unemployment benefits, the amount will vary between 357 and 471 euros, depending on their age.

Meanwhile, Barbara Steffens (SPD) has announced tougher sanctions for missed appointments by unemployment benefit recipients. According to her statement, the new sanctions are aimed at ensuring more discipline in support for unemployment benefit recipients, and are directed at those who miss an appointment without a valid reason.

Steffens emphasized that those on unemployment benefits must participate in the process to receive help, or it is unfair to those who are actively seeking work. She also stated that the new sanctions are not related to the proposed zero increase in unemployment benefits for 2026.

In 2024, there were approximately 5.5 million unemployment benefit recipients, according to government figures. Of these, nearly 4 million were of working age, capable of working at least three hours a day. Total payments for unemployment benefits in 2024 amounted to around 47 billion euros.

In the past two years, unemployment benefits have seen significant increases to combat inflation. However, in 2023 and 2024, these increases were not continued, and the standard rates for unemployment benefits have not been increased for two consecutive years (2025 and 2026).

The proposed zero increase in unemployment benefits for 2026 is part of a plan to maintain the current standard need levels for recipients, as stated earlier. The legally prescribed adjustment mechanism will result in no change to the standard need levels for unemployment benefits.

Steffens' announcement of tougher sanctions does not affect this proposed plan. The cabinet needs to approve the proposal regarding the zero increase in unemployment benefits for 2026. The minister emphasized that these measures are intended to encourage greater participation and responsibility among unemployment benefit recipients, while ensuring that the current standard need levels for recipients are maintained.