The Bundestag passed a draft law on 5 March 2026 to reform the basic income support system for job seekers. The Bürgergeld payment will be renamed “Grundsicherungsgeld.”
The core principle is “Fordern und Fördern”. It translates to “demand and support”.
You can still rely on the state if you need help. But if you can work, you are now expected to do so actively.
Here are the proposed changes.
#1 Getting back to work comes first
- The Vermittlungsvorrang, the rule that placement into work takes priority, is reinstated. Job centers will first check whether you can be placed in employment immediately. Only if that is not possible will training and qualification measures be considered. This applies especially to people under 30.
- Anyone who is capable of working must use their capacity to the maximum reasonable extent so that they don’t need any state support. This particularly affects single adults.
#2 Child’s age reduced from 3 years to 14 months
Parents with children must take up work or participate in an integration measure once their child turns 14 months old. Previously, this applied once the child reached three years of age.
If you are a parent receiving Bürgergeld, plan ahead.
#3 Benefit cuts for non-compliance
- Your standard benefits can be cut by 30% for three months if you drop out of a support measure or fail to apply for jobs.
- Missing your first Jobcenter appointment carries no immediate penalty. From the second missed appointment onward, your payment will be reduced by 30% for one month. If you miss three appointments in a row, a stepped procedure kicks in. In the worst case, your entitlement can be cancelled entirely. This includes housing costs.
- The existing rule for people who flat-out refuse to work is also being tightened. The standard benefit can be withdrawn for at least one month and up to two months. This rule will now be applied earlier than before.
#4 You must use your savings first
Previously, there was a 12‑month grace period during which your savings and assets (up to 40k) were protected. You didn’t have to use them and can get the Bürgergeld.
Now, according to the reform plans:
- This one‑year grace period for assets is abolished.
- From day one, Jobcenter checks your savings and determines your protected savings amount.
- The protected savings amount depends on your age. You must use the savings above the protected savings amount before you can receive the citizen benefits.
Example:
- Anna is 27 and applies for the new Grundsicherung in 2026.
- Age‑linked allowance (protected savings amount based on her age): 5,000€.
- Total savings: 8,000€
- Result: 5,000€ are protected, and 3,000€ (8000 – 5000) count as usable assets. She must use the 3,000€ for her living costs before she gets full benefits.
- Bernd is 52 and applies for the new Grundsicherung in 2026.
- Age‑linked allowance (example): 15,000 or 20,000 euros, depending on the exact final tiers. Let’s assume 20k for this example.
- Total savings: 30,000€
- Result: He must first use the 10k (30k – 20k) for his living expenses. Afterwards, he will receive the Grundsicherung.
#5 Maximum rent cap during the 12-month grace period
Previously, Jobcenter usually paid the actual rent during the 12-month grace period. It doesn’t matter if the rent was higher than the local rent limit.
In the new reform, the Job Center will cover up to 1.5 times the normal “reasonable” local rent during the 12-month grace period. Anything above that, you have to cover yourself or find a new place.
Example 1 – within the cap:
- Local “reasonable” rent limit (KdU‑Obergrenze) for a single person: 600€ cold rent.
- New cap = 1.5 × 600 = 900€.
- Your rent is 850€.
- Result: Jobcenter pays the 850€ (plus appropriate heating, etc.), because it is below the 900€ cap.
Example 2 – above the cap:
- Local rent limit: 600€.
- New cap: 900€.
- Your rent is 1,100€.
- Result: Jobcenter only pays 900€. You must pay the remaining 200€ yourself.
Actual “reasonable” rent limits differ by city and household size. Jobcenter also considers hardship rules when calculating these limits.
#6 Better support for young people and those with health issues
Young people in complex personal situations will receive more comprehensive advice and support. Gaps in provision will be closed, and Jugendberufsagenturen will be strengthened.
People with health limitations will also receive more targeted support.
When does the new reform (Grundsicherung) take effect?
The Bundesrat still needs to approve the law. If it does, the changes will take effect gradually from 1 July 2026.
