The discussion about the introduction of citizen income is controversial and in full swing. The main point of contention is whether money should be cut for those who don’t take jobs or skip training. Now a survey among Hartz IV recipients uncovers what many fear.
In view of the Ukraine war and its consequences, a topic that would have what it takes to dominate the news in “normal” times is currently falling behind: the introduction of citizen income as a replacement for Hartz IV. The SPD wants its tiresome topic “Agenda 2010” get rid of them and make the job market a bit more future-proof.
Federal Labor Minister Hubertus Heil (SPD) launched his draft law two weeks ago, which is to become reality on January 1, 2023. Before that, an autumn with heated discussions is imminent, because there is still no agreement in the traffic light coalition on some controversial points: Essentially, three points are still unresolved: the amount of the new standard rate, who is entitled to get it and when, and third the additional income rules for the recipients of basic security.
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Disputes about large and small questions about citizen income are not only between the SPD and CDU, but also within the coalition. A study by the German Institute for Economic Research (DIW) in cooperation with the Ruhr University Bochum bursts into the middle of the discussion: 560 long-term unemployed people in eight job centers were asked what they think is right and fair.
Some of the results were to be expected: 89 percent of those surveyed would find an increase in the Hartz IV rate “very good” and “rather good”. Only three percent would refuse to get more money, eight percent are undecided. The standard rate is 449 euros for a single and 808 euros for a couple. The office also covers the costs for accommodation and heating. 75 percent would find it “very good” or “rather good” that they would no longer have to accept every reasonable job. The situation is similar with the possibility of additional income without offsetting against the transfer payment: 74 percent of those surveyed would like that.
The study came as a surprise when the long-term unemployed were asked what they perceive as a problem. A whopping 41 percent “completely agreed” with the thesis that “there are many Hartz IV recipients who take advantage of the system”. A further 24 percent “rather agree”, only ten percent “rather disagree” or “don’t agree at all”. Two-thirds of the long-term unemployed answered “yes” to the question of whether many Hartz IV recipients use the system.
The opinion of those surveyed on the subject of sanctions is similarly controversial: only around half are in favor of job centers abolishing penalties if someone does not appear for further training and for the job. About a quarter are against it, the rest undecided.
According to the study leader, the results would show that the long-term unemployed are not a homogeneous group in terms of their values and perceptions of justice. Many Hartz IV recipients want to be treated fairly and fairly by the state; but also see that many of them do not behave accordingly, but exploit the system.
Apart from the amount of the new standard rate, this finding is aimed at the biggest point of contention in citizen income: whether the sanctions should be abolished if the long-term unemployed do not accept a reasonable job. Because what is considered “reasonable” has always been controversial and also depends on individual standards such as the state of health. For a long time, the rule applied: if you don’t take a job, you have to expect to get less money.
Labor Minister Heil wants to abolish this so-called “placement priority”. There should be a bonus of 150 euros per month for those who take part in further training measures. Heil calls this “a principle to dare more encouragement.” The assessments of the idea vary widely: proponents say that the job centers now have much more pressure to take care of what is best for those affected in the long term. Critics fear that without a means of pressure, many will not find their way back into paid work.
The third major issue is the additional income: 75 percent of Hartz IV recipients would like more to be possible here. A third said they earn extra money at least once a week. It was not asked whether this would be reported to the job center.
A difficult situation for the employment agency: On the one hand, they want people to work. On the other hand, she actually has to follow rules. The long-term unemployed largely agree on what is fair when it comes to wealth: around 60 percent consider the SPD’s plan to be “good” or “rather good”, that assets of up to 60,000 euros should remain untouched for a long time and not just for two years .
If the reform came about as Hubertus Heil proposed, it would cost taxpayers 500 million euros a year compared to the status quo. But it is still being intensively negotiated within the traffic light coalition. But everyone agrees on one thing: the labor market is fundamentally different than it was 20 years ago: Agenda 2010, including Hartz IV, urgently needs to be reformed.
The contribution “Survey among Hartz IV recipients: “Many use the system”” comes from WirtschaftsKurier.
