Germany may toughen up long-term unemployment benefits

The German government has agreed on plans to toughen up long-term unemployment benefits - Bürgergeld - as part of the 2025 budget, Report informs via The Local.

The latest draft includes a 1,000 euro conditional bonus for those who take up a job.

Now that the cabinet has agreed the changes, the draft law will make its way to the Bundestag and Bundesrat to be voted on.

The changes come as part of the coalition's so-called "growth initiative". They are to apply from January 1st, 2025.

People who refuse to accept work, or don't take part in a training or integration measure designed to get people back into the labour market without a valid reason, could have their allowance cut by 30 percent for three months.

Labour Minister Hubertus Heil (SPD) said that the reforms were intended to help people get back into work. "But those who do not follow the rules or cheat the system with illegal work must expect harsher consequences," Heil said.

This would include refusing to take a job they are qualified for that would require a three-hour commute, for example.

The same penalty would apply to those who receive Bürgergeld and work illegally on the side i.e. don't report additional income. Employees at job centers will be required to report suspected cases to customs.