Germany plans to change the legal status of Ukrainian refugees and reform the system of social benefits. Find out what changes are proposed by German Finance Minister Christian Lindner and how they will affect Ukrainians

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German Federal Minister of Finance Christian Lindner has launched an initiative to change the legal status of Ukrainian refugees. He spoke about this in an interview with WirtschaftsWoche magazine. The main goal of the proposal is to optimize public spending on social benefits and encourage employment of Ukrainians.

We talked about fines for unemployed refugees and other changes that Ukrainians in Germany will face by the end of 2024 in our previous article.

What prompted the German government to make the changes?

Currently, Ukrainian refugees in Germany receive “civic money” (Bürgergeld), social unemployment benefits on an equal footing with German citizens. According to the Minister of Finance, this system needs to be revised to ensure more efficient use of budget funds.

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Main directions of the proposed reform

New legal status

The Minister proposes to create a separate legal status for refugees from Ukraine. Ukrainians will not be subject to the standard asylum procedure, but they will not have automatic access to a full package of social benefits.

Changes in the social benefits system

Instead of the current Bürgergeld, it is planned to introduce a combined system that will include:

– Benefits for asylum seekers (lower than the benefits currently provided)

– Special instruments to stimulate employment

Reform of housing compensation

The system of housing reimbursement may also undergo significant changes:

– Shift from compensation of actual costs to a flat rate

– Providing refugees with the opportunity to choose their own housing in accordance with a set budget

– Independent regulation of utility costs

Expected results of the reform

According to Christian Lindner, the proposed changes will allow to

– Significantly reduce budget expenditures

– Increase the level of employment among Ukrainian refugees

– Optimize the use of housing and utilities

The proposals are currently under discussion. The Minister of Finance emphasizes the potential savings of “billions of euros” by optimizing housing costs and reforming the social welfare system. However, no specific timeframe for implementing the changes has been announced.

If you have any questions about changing your legal status or need advice on migration issues, we recommend that you contact professional lawyers. Qualified Visit Ukraine specialists in migration law will help you understand all the nuances of the new legislation and protect your rights in Germany.

We remind you! This year many Ukrainians living in Germany can take advantage of the Wohngeld housing subsidy. This is an important financial support for those who have a low income and cannot fully cover their housing costs. Read more about who is eligible and how to get it in our previous article.

Photo: Adobe Stock / Olga Yastremska

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