Factbox: The German government’s plan to reform welfare

BERLIN, Nov 14 (Reuters) – Germany’s upper house of parliament on Monday blocked a landmark welfare reform that aimed to boost payments to state benefit recipients and help the unemployed learn new job skills, replacing a system that pushes them to accept any job. to offer.

The government aims to introduce the reform from 1 January. Labor Minister Hubertus Heil now wants to appeal to a committee that mediates between the lower house and the upper house of parliament to speed up a resolution so that the bulk of the reform can still come into force in early 2023.

Here are some key points about the Buergergeld, or “citizens’ money”, which will replace the Hartz IV system introduced in 2005.

* The reform provides for a significant increase in monthly allowance payments. Going forward, a single adult will receive 502 euros ($516.21) per month for living expenses, an increase of 53 euros. Standard rates for couples and children will be also increase

* The reform aims to facilitate the placement of the unemployed on the labor market, among other things through more qualification and continuing education

* Unemployed vocational training participants will receive an additional 150 euros per month

* Subsidized vocational training can be followed for up to three years if necessary instead of two years as before.

* Additional expenditure due to the reform is estimated at around €4.8 billion for 2023, with further increases thereafter

($1 = 0.9725 euros)

Written by Paul Carrel; Editing by Susan Fenton

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James R. Rhodes