Germany Shifts Ukrainian Refugee Benefits to Asylum Seeker System for New Arrivals

Policy Shift for Ukrainian Refugees in Germany

The German coalition government has enacted a significant change in its social assistance policy for Ukrainian refugees. Effective for those arriving on or after April 1, 2025, new Ukrainian refugees will no longer be eligible for the long-term unemployment benefits, known as Bürgergeld, but will instead receive support under the stricter Asylum Seeker Benefits Act (Asylbewerberleistungsgesetz). This reform, agreed upon by the Interior and Labour Ministries, aims to incentivize employment and streamline integration into the German labor market.

Financial Implications and New Conditions

The transition to the Asylum Seeker Benefits Act will result in a reduction of monthly financial support for affected individuals. Under the previous Bürgergeld system, a single adult typically received around €563 per month. With the new regulations, this amount will decrease to approximately €441 per month for asylum seekers. This sum includes roughly €196 for personal needs and €245 for living expenses such as food and clothing. Housing and heating costs will continue to be covered separately by local authorities.

Beyond the financial adjustment, the new policy introduces additional requirements for eligible refugees:

• Asset Test: Individuals with significant savings or property will be required to utilize these resources before qualifying for state assistance.
• Job-Seeking Obligation: Newly arrived Ukrainians will be mandated to actively seek employment. Failure to demonstrate efforts in job searching could lead to further reductions in benefits.
• Payment Method: Funds may be disbursed via a special payment card, which could limit cash withdrawals.

These measures do not affect Ukrainian refugees who arrived in Germany before April 1, 2025; they will continue to receive Bürgergeld provided they meet existing job-search requirements.

Rationale and Expected Impact

The German government's decision stems from concerns regarding the relatively low labor market participation rate among Ukrainian refugees. Government data indicates that fewer than 25 percent of working-age Ukrainians in Germany are in regular employment, with some reports suggesting around 32 percent are employed. Ministers argue that lowering benefits will create a stronger incentive for refugees to seek work and accelerate their integration into German society, while also aiming to alleviate pressure on social spending.

Interior Minister Alexander Dobrindt confirmed the reform, stating that the changes have been coordinated between the Ministry of Labour and the Ministry of the Interior and were expected to be approved by the federal government. An estimated 21,000 Ukrainians who entered Germany between April 1 and June 30, 2025, could be directly impacted by these new regulations. Currently, Germany hosts between 1.1 and 1.2 million Ukrainian refugees.

Reactions and Concerns

The policy shift has drawn criticism from various quarters. Some critics express concern that the move could push vulnerable families into poverty and place additional strain on municipal job centers. The employment agency has also voiced apprehension that the changes might complicate efforts to advise and place Ukrainians in suitable employment. Discussions within the political landscape have seen figures like Bavarian Prime Minister Markus Söder advocating for even broader reductions in benefits, though such proposals did not gain widespread support.