(de-news.net) – The Federal Government has announced its intention to dismantle most elements of the existing Bürgergeld system, signaling a major restructuring of the country’s social welfare framework. The Ministry of Labor formally introduced the draft legislation during the cabinet’s final regular meeting of the year, underscoring the significance of the reform as one of the last major policy decisions before the close of the legislative calendar.

Labor Minister Bärbel Bas (SPD) outlined the central objective of the proposal: the replacement of the current Bürgergeld with a newly designed fundamental security system. This system would impose more rigorous obligations on recipients, requiring greater cooperation and compliance with administrative procedures. In cases of refusal or repeated noncompliance, the framework would authorize stricter sanctions, including the possibility of a full suspension of payments. The reform thus aims to balance social support with heightened accountability, reflecting a shift toward conditional welfare provision.

Persistent disagreement between the SPD and the Union had centered on whether complete benefit termination should be permissible. Negotiations ultimately produced a compromise stipulating that, before such a measure could be enforced following reporting failures, affected individuals must be guaranteed the opportunity for a personal hearing. This safeguard was introduced to ensure procedural fairness and to prevent arbitrary exclusion from the system.

The legislation is scheduled to take effect no earlier than July 1, 2026, allowing time for administrative preparation and parliamentary deliberation. Once implemented, the reform is expected to reshape the welfare landscape by tightening eligibility requirements, reinforcing obligations, and redefining the balance between state support and personal responsibility.