Heil needs a supplement of 3.25 billion euros for citizens’ money
Inflation, more unemployed people and higher numbers of refugees: Citizens’ money is likely to cost more than previously planned. Federal Labor Minister Hubertus Heil reportedly needs several billion euros more for rent and heating costs as well as monthly payments.
BFederal Labor Minister Hubertus Heil has to spend significantly more money on citizens’ money this year than planned. On Sunday, his ministry confirmed over-plan additional spending totaling 3.25 billion euros. Of this, around 2.1 billion euros were accounted for monthly citizen’s allowance payments and 1.15 billion on rent and heating costs, most of which are covered by the federal government. Rents, heating costs and other additional costs have risen more than expected in the budget planning a year ago, said a ministry spokeswoman. “Bild” first reported on the higher housing costs.
The Ministry of Finance had informed the Budget Committee of the Bundestag that it had approved corresponding additional expenditure. According to the letters available to Reuters, the so-called accommodation costs for the full year 2023 are now estimated at 11.55 billion euros instead of the planned 10.4 billion euros. The cost of monthly living benefits is now expected to be 25.86 billion euros instead of 23.76 billion euros.
The reasons given were inflation, poorer economic development and the influx of Ukrainian war refugees who are immediately entitled to citizen’s money. Compared to previous expectations, higher unemployment figures are also expected in 2023.
The ministry did not want to comment on whether the additional spending this year would also increase plans for 2024. Then the citizen’s benefit for around 5.5 million adults and children in basic security will increase by up to 61 euros per month, making it higher than ever before. The ministry estimated the additional costs resulting from the increase at around 4.4 billion euros. Of this, 1.1 billion euros were not yet taken into account in the government’s draft budget for 2024. If the number of citizen benefit households is higher, the additional spending could continue to rise in 2024. The draft budget is to be finalized by the Bundestag’s budget officers next week
The post first appeared on www.welt.de