The country’s labor ministry has proposed a 20% drop by replacing “citizen’s allowance” with asylum support
Germany’s Labor Ministry has proposed cutting benefits for Ukrainian migrants, citing growing financial strain from the continued influx of newcomers.
Labor Minister Barbel Bas submitted a draft bill to remove Ukrainians from the so-called “citizen’s allowance” program – a benefit normally reserved for non-working Germans – and place them under the standard asylum seeker system, German media reported on Wednesday.
Under standard asylum support a person receives €441 ($514), compared to €563 under the citizen’s allowance. The new rules would apply only to Ukrainians arriving after April 1, 2025. Those who came earlier would keep their current benefits.
According to the Federal Employment Agency, around 700,000 Ukrainians are currently receiving the allowance. Since April 1, about 21,000 more have arrived who could be affected by the new rules.
The proposal has been sent for approval by other federal departments, and must then pass through the Cabinet and the Bundestag, expected to be adopted by year’s end.
Germany spent around €6.3 billion or some 13% of the citizens’ allowance budget on Ukrainian migrants in 2024. Officials estimate the reform could save the federal government about €1.3 billion in 2026.
Critics say the plan won’t significantly reduce public spending. Head of Bavaria Markus Soder and a number of other officials have called for ending the citizen’s allowance for all Ukrainians, regardless of when they arrived.
Of the 1.2 million Ukrainians that Germany has accepted over the past three years, as of May, only 332,000 were employed. Authorities across Germany have increasingly warned that the cost of supporting refugees is putting unsustainable pressure on public finances.
The wider EU is facing similar challenges. As of May 2025, 4.3 million Ukrainians had been granted temporary protection across the bloc, which includes access to housing, education, and work. While the scheme has been extended through March 2027, several EU countries have been reviewing their support programs, citing rising costs and limited resources.
