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Media reports Germany to cut payments for Ukrainians

(MENAFN) Germany’s Labor Ministry has proposed reducing welfare payments for newly arriving Ukrainian migrants, citing mounting financial strain from continued inflows.

According to German media, Labor Minister Barbel Bas has submitted a draft bill to move Ukrainians out of the “citizen’s allowance” program — normally reserved for unemployed German citizens — and into the standard asylum seeker system. Under asylum rules, individuals receive €441 ($514) per month, compared to €563 under the citizen’s allowance.

The change would apply only to Ukrainians arriving after April 1, 2025; those who came earlier would keep their current benefits. Around 700,000 Ukrainians currently receive the allowance, with 21,000 more arriving since April who could be affected.

Germany spent €6.3 billion — roughly 13% of its citizens’ allowance budget — on Ukrainian migrants in 2024. Officials estimate the reform could save €1.3 billion in 2026. Critics, however, argue the savings will be minimal, with some politicians calling for the benefit to be removed for all Ukrainians regardless of arrival date.

Out of the 1.2 million Ukrainians accepted by Germany over the past three years, only about 332,000 were employed as of May. Authorities warn that supporting refugees is placing unsustainable pressure on public finances.

The EU as a whole faces similar challenges, with 4.3 million Ukrainians granted temporary protection as of May 2025. While the scheme has been extended to March 2027, several member states are reconsidering support programs due to rising costs and resource constraints.

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