Hartz 4: New details are out!  THAT will be different with citizen money

Hartz 4: New details are out! THAT will be different with citizen money

01/15/2022 at 00:50

This is Hartz IV

This is Hartz IV

Since unemployment benefit II was introduced in 2005, it has been popularly known as Hartz IV. But where does the name come from?

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The traffic light coalition is planning a major reform this year: The citizen money target Hartz 4 and the basic security substitute.

Now new details are coming out as to what exactly is going on with that citizen money compared to Hartz 4 will change.

Hartz 4 and basic security: New details are out! It will be different with citizen money

With the planned abolition of Hartz IV, Federal Labor Minister Hubertus Heil (SPD) wants to get those affected out of long-term unemployment on a large scale – and with completely new approaches!


This is Hartz 4:

  • Hartz 4 actually means unemployment benefit II (ALG II).
  • It has existed since January 1, 2005.
  • It is the basic security benefit for employable beneficiaries according to the second book of the Social Security Code.
  • It aims to enable beneficiaries to lead a dignified life.
  • However, the benefit can be reduced by sanctions.
  • The traffic light coalition wants to convert Hartz 4 into a new citizens’ allowance.


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In December 2021 there were 977,000 long-term unemployed. This means a significant increase since the Corona crisis, because in 2019 their number fell to below 700,000. Around 42 percent of all unemployed people in Germany have been without a job for more than a year! Two thirds of them have not completed vocational training.

The traffic light government wants to start with the planned citizen income reform. “Today, the job centers often only place people with basic security in short-term work and see them again after a few months because they cannot be put into work permanently,” Heil complained.

Hartz 4 and basic security will be replaced by citizen income: “In the future, training will come before temporary jobs”

The Minister of Labor wants to change that! “In the future, training will come before temporary jobs,” says Heil. One wants to give the long-term unemployed the opportunity to “catch up on a vocational qualification and thus give them a real chance of long-term employment,” Heil explained to the German Press Agency.

As an incentive, there will be a monthly bonus of 150 euros for the long-term unemployed who take part in further training.

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The coalition has great hopes for the planned new participation agreements between job centers and the unemployed. “The previous integration agreements are very formalized and not always tailored to needs,” said Heil. In the future, it should be specifically stated which qualifications are necessary, for example, and what kind of support is needed.

The FDP social expert Pascal Kober also calls for the job centers to be “careful and sensitive” in determining the skills of the unemployed in the future.


More articles about Hartz 4:


Hartz 4 reform: open date

It is still unclear exactly when Hubertus Heil will introduce a bill on citizen income to the Bundestag. According to the Social Democrat, it was a “major reform” that had to be carefully prepared. However, a presentation is expected in the course of 2022.

There is still disagreement in the coalition on the question of future sanctions. The amount of citizen money is also currently unknown. (like with dpa)

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