Bürgergeld cuts have saved just €2m so far, gov’t figures show

According to government figures, the CDU/CSU-SPD-backed long-term unemployment reform has not delivered the promised savings. Here’s how much the cuts saved, and what they meant for recipients:

Neue Grundsicherung reform hasn’t delivered

In September 2025, Chancellor Friedrich Merz (CDU) said he was planning cuts to long-term unemployment benefits that he hoped would save five billion euros a year.

In July 2026, the government scrapped the long-term unemployment benefit “Bürgergeld” (citizens’ allowance) and replaced the payment with “Neue Grundsicherung” (new basic support).

Requirements to claim and sanctions tightened, and the amount claimants received was frozen. Single claimants currently receive 563 euros per month, and those with children receive an additional 357 to 471 euros per child, depending on the child’s age. 

Now, a Süddeutsche Zeitung analysis of government figures found that the reform has brought no significant savings. In July 2025, before the reform was passed, the government spent 3,5 billion euros on Bürgergeld; in August, 3,5 billion; and in September, 3,4 billion. 

After the reform passed, the government spent 3,5 billion euros on Neue Grundsicherung in July 2026, 3,4 billion in August, and 3,3 billion in September. This means the government has saved around 200 million euros so far. For reference, Germany’s wealthiest man, Lidl owner Dieter Schwarz, makes 200 million euros every 2,5 hours.

What consequences have the cuts had?

Speaking to Süddeutsche Zeitung, economist Andreas Peichl of the Ifo Institute in Munich said the limited savings were unsurprising. 

“[Merz’s promise to save billions] raised expectations which the reform was unable to fulfil,” Peichl said, adding that the failure to meet these high expectations “undermines the credibility of social reforms as a whole”. 

According to the economist, at least one million people receiving long-term unemployment benefits would have to become employed to make significant savings. 

“Sanctions alone cannot achieve that,” he added, because many recipients are children, people receiving top-up benefits for low-paid work, single parents or people in further training.

Beyond Merz’s incorrect balancing of the books and the hit to political credibility, the tougher sanctions have made claiming long-term unemployment benefits much more stressful and bureaucratic.

With the reform, the requirements for claiming Neue Grundsicherung became stricter than those for Bürgergeld. The government also introduced tougher sanctions for recipients deemed not to be complying with the claim rules.

Stricter rules for attending Jobcentre appointments were also introduced. Those who miss two appointments face having their benefits cut by 30 percent and those who miss a third appointment must attend a “hearing” at the Jobcentre.