Citizens' money under pressure: Poverty threatens despite rising prices!

Citizens' money under pressure: Poverty threatens despite rising prices!

In the heart of Cologne, the situation for citizens' benefit recipients is becoming increasingly precarious. While citizen's money is actually intended to secure the subsistence level, a current evaluation by the Institute for Work and Qualification (IAQ) shows that the standard rates lag behind inflation. The development for 2026 is particularly dramatic, as recipients will again have to make do with a standard rate from 2024, which is referred to as the second zero round in a row. This bitter balance means that more and more people are falling into poverty, like this Frankfurter Rundschau reported.

The current standard rate for an adult single is 563 euros, but cannot cover the loss of purchasing power that many recipients have suffered in recent years. According to the Joint Association, a single should receive at least 813 euros per month in order to lead an acceptable life. In 2022 and 2023, the loss of purchasing power amounts to 403.11 euros - a sum that can be viewed as serious considering that consumer prices rose by 27% from 2005 to 2021 alone, while standard rates were only adjusted by 29%.

Inflation and standard rates

How can those affected by these developments pay their bills? The situation is particularly dramatic for pensioners and people with low incomes. Consumer prices for food and non-alcoholic drinks have risen by 80%, while basic social security benefits cannot keep up with an increase of only 63%. Critics see the calculation of the standard rates as “inconsistent and statistically problematic” – especially because they are based on the spending of the bottom fifth of the population, which does not reflect the real life situation of most of those affected.

In addition, the government plans to update the standard rates annually, but current inflation is only partially taken into account. In addition, additional requirements, such as for warm water, are also affected by rising prices. A single would therefore not only have to make do with the standard rate of 563 euros, but would also urgently have to hope for more support in order to be able to cover the increasing costs of living.

The demands of those affected

The demands for a “poverty-proof citizen's benefit” are becoming louder, and many voices, such as those from the Paritätischen Gesamtverband, are calling for an increase to protect those affected. Given current developments, the question is how long the situation can continue like this without real improvements for people. The current policy seems to offer short-term solutions with its update mechanism, but in the long term those affected are left without a sustainable concept.

Overall, it remains to be hoped that the key players will take the concerns of citizens' benefit recipients seriously. There is a lot at stake and the social responsibility to help those in need in our city should not be pushed into the background. The aim must be to sustainably improve the tense situation. Further information is available at statistic.arbeitsagentur.de available.