The German government under Chancellor Friedrich Merz is continuing its course of stricter migration policy and reform of the social benefits system. Key changes affecting millions of benefit recipients, including migrants and refugees, are either coming into force shortly or are in the final stages of approval.
From July 2026, the civic income (Bürgergeld) will be replaced by a stricter system called “Neue Grundsicherung” (New Basic Security). The new rules provide for stronger sanctions for refusing offered work, missing appointments at the Jobcenter, or insufficient job-seeking activity. Penalties can reach 30% of the benefit even for a first offence.
Reduction of payments for migrants and asylum seekers: Newly arrived Ukrainians (after April 2025) will no longer receive the full Bürgergeld but will instead be placed on lower payments under the asylum seekers’ benefits law (Asylbewerberleistungsgesetz). The difference amounts to around €120 per month on average. Similar restrictions apply to other migrants as well.
Stricter conditions: The government is introducing more rigorous asset assessments, limits on housing cost coverage, and accelerated eligibility checks. Focus is placed on able-bodied recipients «those who can work must work,” Chancellor Merz has emphasised.
The government justifies the reforms by reducing the burden on the budget, stimulate employment, and combat abuse of the system. According to polls, around two thirds of Germans support restricting migrants’ access to full social benefits until they are employed and integrated.
At the same time, human rights organisations and social services are warning that the tightening could lead to a rise in poverty among vulnerable groups, including families with children and long-term unemployed people with migrant backgrounds. Critics describe the approach as «punitive logic.”
The reforms are part of a broader package of migration policy measures, including the acceleration of asylum application procedures, expansion of the list of safe countries of origin, and facilitation of deportations.
The full effect of the changes is expected to become apparent in the second half of 2026. The government promises to save billions of euros, which are planned to be directed towards supporting the economy and defence.