Bundesjugendring criticises the discrimination against young people under the new basic income scheme

The disadvantage faced by young people is particularly evident in the rules on assets: in future, benefit recipients under the age of 30 will only be allowed to retain an exempt amount of 5,000 euros. From the age of 31, this amount doubles to 10,000 euros; from the age of 41, it rises to 12,500 euros; and from the age of 51, to 20,000 euros. This would mean that young people under 30 would be entitled to only half the exempt assets that apply from the age of 31.

At the same time, the previous waiting period is being abolished. Assets would therefore be assessed as soon as an application is made – even if people are only reliant on basic income support for a short period, for example whilst transitioning into working life. This increases the bureaucratic burden and may place an additional strain on young people.

From the Bundesjugendring’s perspective, this sends the wrong signal. Many young people work hard to build up their first savings. If they have to draw on these savings whilst receiving benefits, financial independence is hindered rather than strengthened. The reform thus creates a perverse incentive: It may discourage young people from building up any savings at all. “This has nothing to do with intergenerational justice. Anyone who puts young people at a disadvantage compared to older benefit recipients cannot speak of intergenerational justice,” explains Lena Bloemacher, deputy chair of the Bundesjugendring.

The Bundesjugendring is also critical of the planned reintroduction of the priority for job placement. In future, job centres are to give priority to placing benefit recipients in work before further training, retraining or other support measures come into play. Admittedly, there may be exceptions for people under 30 if support measures create better long-term prospects on the labour market. However, this exception is designed as a discretionary provision and is therefore at the discretion of the authorities.

In the Bundesjugendring’s view, the focus must be on skills development, support and sustainable prospects, particularly for young people. Placing young people too hastily in low-skilled or poorly paid jobs risks leading to precarious employment trajectories in the long term. Young people in particular – those who have not yet completed their training, who need support in making the transition to training or work, or who find themselves in challenging life situations – need tailored support rather than pressure to find short-term placements.

“Young people need reliable support and prospects – not policies that increase pressure and existential fears,” explains Bloemacher. “Particularly during transitional phases, skills development, guidance and individual support must take priority. Basic income support must not force young people into short-term employment, but must open up pathways to an independent and secure future.”

The planned tightening of sanctions is also particularly problematic. It is proposed that benefits could be cut by 30 per cent even upon the first breach of obligations. A complete withdrawal of benefits also remains a possibility. In principle, this could also affect minors, as young people aged 15 and over are regarded under SGB II as benefit recipients capable of working.

The Bundesjugendring warns against subjecting children and young people to a system of sanctions that jeopardises their basic livelihood. Minors must not be affected, either directly or indirectly, by complete cuts to benefits. Ensuring their minimum standard of living is the state’s responsibility. Sanctions can exacerbate existing problems, particularly among young people: they can lead to debt, cause them to lose contact with support networks, or even result in homelessness, and contribute to young people taking on low-skilled work in the short term rather than developing long-term prospects.

“Children and young people must not be subjected to a system of sanctions that penalises them for things over which they have neither control nor influence,” clarifies Sophie Schmitz, Deputy Chair of the Bundesjugendring. “Instead of sanctions, young people in particular need low-threshold support, reliable guidance and offers of assistance.”

The Bundesjugendring calls for much greater attention to be paid to the impact of the reform on young people. Social security, skills development, protection against poverty and sustainable prospects must be at the heart of basic income support – not pressure, sanctions and the marginalisation of young people.

The planned regulations follow a familiar pattern: young people – and the specific effects that legislation often has on this age group – are frequently overlooked in legislative processes, even though political decisions have a direct impact on their living conditions, life transitions and future prospects. A basic income support scheme that is to live up to its purpose must prioritise social security, skills development, protection against poverty and sustainable prospects.