According to the federal government’s plan, long-term unemployed should receive 1,000 euros if they accept a job. However, there was criticism of the project from the SPD parliamentary group.
SPD parliamentary group leader Rolf Mützenich has expressed doubts about plans for a “start-up bonus” for the long-term unemployed when starting work. “The federal government thinks that with initial funding of 1,000 euros, the long-term unemployed can be persuaded to return to work,” Mützenich told the “Rheinische Post”. “The SPD parliamentary group is very skeptical of this concept. We have a lot of question marks.”
The idea of Economy Minister Robert Habeck (Green Party), “to pay a reward of 1,000 euros to someone who can and should do the job without a bonus, at first glance goes against a healthy sense of justice,” said the SPD politician. “Even if some labor economists support this project, we must look again at how the intended incentives can be set properly and fairly.”
The new rules are planned to come into effect on January 1, 2025
Last week, the cabinet decided to tighten rules for citizen beneficiaries. If they refuse to work, they will face harsher penalties. This part of the regulation is also called start-up financing. Long-term unemployed people who have worked in jobs subject to social insurance contributions for more than twelve months should be able to receive a one-off payment of 1,000 euros. The regulation is planned to come into effect on January 1, 2025.
There has already been criticism of the project among the traffic light coalition. But on Monday, a government spokesman stressed that the federal government would stick to the plan. On Tuesday evening, Chancellor Olaf Scholz (SPD) expressed doubts about the effectiveness of the plan. The planned bonuses “may be pointless,” he said. “But it wouldn’t hurt.”