Bid round forthcoming with Merz advocating for changes

The German federal government has announced that the standard rates for citizens' allowance will remain unchanged in 2026. This decision, a result of a legally defined continuation mechanism, is part of a broader plan to reform the social welfare system.

The legal mechanism for standard rates is based on an annual calculation of whether rates need to be adjusted, depending on the development of certain net wages and prices. This year, the rates will stay at 563 euros per month for singles and between 357 and 471 euros for children, depending on age.

Minister Barbara Bas, along with the leaders of the Union and SPD factions, has agreed on a plan with proposals to be implemented after the summer break. The plan includes stricter sanctions, such as deducting a larger amount for missed appointments, and more coordination and exchange to leave behind recent disputes and blunders.

However, the plan has not been without criticism. Left party leader Jan van Aken has stated that the plans pinch the poor and benefit the super-rich. The German Social Association has also criticized Chancellor Armin Laschet for distortions in his statements about the social state's financial impact.

Joachim Rock, the main executive of the Paritätischer Gesamtverband, has expressed concern, stating that the second consecutive zero increase means more hardship and growing exclusion. Union parliamentary group leader Steffen Bilger, on the other hand, supports the 2026 plans, stating that it shows citizens' allowance costs do not always have to keep rising.

The government commission on social state reforms, established in September 2025, will begin its work this Monday and is to submit proposals by the end of the year. The commission, which includes representatives from the federal government, states, and municipalities, is focusing on benefits like citizen's money (Bürgergeld), housing allowance (Wohngeld), and child supplements (Kinderzuschlag).

The goal of the reforms is to ensure the sustainability of health, long-term care, and pension insurance. Chancellor Laschet has made clear that these reforms will involve painful decisions and cuts. He has also emphasized the need for reforms and criticized the expression "we can no longer afford this social state financially".

Laschet has blamed politics for the current state of affairs and expressed determination to renew the country. The coalition aims to pass several laws for social system reforms in the fall. The rates were significantly increased in 2023 and 2024 to compensate for high inflation.

In 2025, there was already a zero increase. The Chancellor has made it clear that these reforms are necessary to secure the future of the social state in Germany.