The German government will restructure the social assistance 'Bürgergeld', eliminating the grace period for savings and imposing harsher penalties.

The German government, through Labor Minister Bärbel Bas, announces a major reform of the social assistance system 'Bürgergeld'. The new legislation will ensure that benefits are granted only to those truly in need, eliminating the grace period for savings. Thus, beneficiaries will have to use their personal savings before applying for state aid. Although not all savings will be confiscated, the allowed amounts vary depending on age: young people under 20 can keep 5,000 euros, those between 20 and 40 years old 10,000 euros, and individuals over 50 years old 15,000 euros. Additionally, new rules for rents are being introduced, limiting the state's coverage of costs to one and a half times the rent considered reasonable. If the rent exceeds legal limits, beneficiaries will have to request a reduction, and in case of refusal, the state will be able to recover the amounts paid in excess. These measures aim for a more efficient use of public funds and the prevention of poverty among retirees.