Bundesrat approves Hartz IV rate increase of three euros

The Bundesrat has approved a slight increase in Hartz IV standard rates. As a result, beneficiaries will receive three euros more per month starting next year. Under the new regulation, the standard rate for single adults will increase by three euros to 449 euros per month starting in 2022. In total, recipients of unemployment benefit, social assistance and basic benefits for old age and limited earning capacity will receive 0.76 percent more money.

The Federal Statistical Office calculates the standard requirement annually on the basis of price trends and net wage developments. However, the recent significant increase in consumer prices – in September, the price increase was 4.1 percent compared to the same month last year – has not yet been included in the rate calculation. They will only be taken into account from 2023, a spokeswoman for the Social Affairs Ministry said. With annual adjustments, the German government wants to ensure a decent standard of living.

The standard rate for partners and spouses will increase by 3 euros to 404 euros
Children between the ages of 14 and 17 will receive 376 euros, 3 euros more than at present
The rate for children aged 6 to 13 and for children aged 0 to 5 will increase by 2 euros (311 and 285 euros)
For 18 to 24 year olds living in the family home and adults in institutions, the rate increases from €357 to €360.

The additional costs of the increase are estimated at 190 million euros in the coming year.

Criticism from trade unions and social organizations

Social organizations and trade unions in Germany have criticized the planned increase as insufficient. Due to inflation, there is talk of an actual reduction in benefits.

The German Children’s Fund has demanded a complete recalculation of standard needs. “This small increase in the basic rate for children receiving Hartz IV cannot reduce the child poverty rate in Germany because it does not even compensate for the inflation rate,” – Fed Executive Director Holger Hofmann explained. “Overall, they do not correspond to the necessary socio-cultural level of subsistence and should be raised to a level that allows real participation in society.”

source: www.spiegel.de

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