🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Germans question value of working after new welfare increases - survey

Published 05/09/2023, 12:42
Updated 05/09/2023, 13:32
EUR/USD
-

BERLIN (Reuters) - More than half of Germans believe work is not worthwhile after the government's planned increase in welfare payments and child benefits, a survey showed on Tuesday.

The government said it was raising benefits, first introduced in 2005, to fight child poverty and help citizens cope with inflation, but added it did not want to deter people from work altogether.

Welfare payments, dubbed "citizens' money", for more than 5.5 million jobless in Germany will rise to 563 euros ($605.06)from 502 euros per month for single people from next year.

Rent and health insurance costs are also covered by the government for those receiving the benefits.

The increase coincides with a large rise in support for parents on a low income from 2025. They will receive up to 636 euros per month for their first child and another 530 euros for every other child. The sum is currently fixed at 250 euros per month per child.

With a minimum wage of around 12.4 euros per hour or 1,450 euros net income per month, some 52% of Germans have the impression that it's not worth working as those in fulltime employment on a minimum wage don't earn significantly more than those living off welfare, a survey by pollster INSA published by Bild newspaper showed.

Germans are divided whether the increase in welfare payments is justified with 45% in favour and 44% against it, the survey of 1005 respondents showed.

Finance Minister Christian Lindner said last week in a presentation on the basic child allowance that benefits should not discourage people from working.

"Our concern is to maintain work incentives," Lindner said, adding that employment would be a prerequisite to access some allowances as parental unemployment was a key driver of childhood poverty.

© Reuters. FILE PHOTO: People stroll at Munich's main shopping street ahead of the Christmas celebrations in Munich, Germany, December 23, 2019. REUTERS/Michael Dalder/File photo

"The best way to overcome poverty is to work," he said.

($1 = 0.9305 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.