Friedrich Merz proposes cutting social assistance to the unemployed and low-income, including Ukrainian refugees
During the years of the full-scale war in Ukraine, the situation of Ukrainian refugees in Germany gradually lost its status as an untouched humanitarian topic. If at the beginning of 2022, aid to Ukrainians was almost unconditional, and Ukrainians were seen as war victims who needed protection and care, then in the summer of 2025 the tone of state rhetoric changed. Demands not only for integration, but also for responsibility are being heard more and more often, primarily in the form of participation in the labor market and reducing dependence on social benefits. The initiative of Chancellor Friedrich Merz’s government, which advocated the reduction and stricter control of social transfers for the unemployed and the poor, became a new stage in this change of political paradigm. These payments cover not only German citizens, but also Ukrainian refugees, who until now received it on an equal basis with other residents of the country.
What will change in the Bürgergeld system
A new stage of social system reforms is brewing in Germany, which is causing lively discussion in the political and social environment. Chancellor Friedrich Mertz stated about his government’s intention to change the approach to the payment of basic unemployment benefits, known as “Bürgergeld” (Bürgergeld). And although officially we are talking about everyone who receives this support, the fact that the changes will directly affect Ukrainians who came to Germany as refugees attracts special attention.
The reason for the initiative was the financial burden on the budget and the suspicion of abuse of the system. “People who can work should work,” Mertz succinctly explained his position, outlining the key vector of the reform: increasing requirements for those who receive assistance but do not demonstrate efforts in the direction of employment.
Today, “Bürgergeld” is not only monetary assistance for the unemployed, but also an element of a wider social architecture, aimed at supporting those who for certain reasons cannot provide for themselves: both temporarily and long-term. Among such people are both German citizens and foreigners who have received a residence permit, in particular Ukrainians who have temporary protection within the framework of the EU directive.
Friedrich Merz does not deny the need for state support, but in his rhetoric the emphasis on control, efficiency and the fight against abuses is noticeably increasing. He directly stated the possibility of revising not only the grounds for receiving assistance, but also the amounts that the state compensates for housing. It is about the potential setting of an upper limit for rent and testing the area of living space.
Such actions, according to the chancellor, are part of a wider financial reform, which from 2026 will involve the transition to the payment of a basic income in a new format. Merz is sure that “it is possible to save more than one or two billion euros” if changes are implemented gradually and systematically. His message is simple and stark: “The system is wrong for those who do not work but receive benefits and at the same time engage in undeclared activities.”
Ukrainian refugees are the focus of the debate
Despite the lack of direct focus on Ukrainian citizens, this category of beneficiaries is one of the largest and, accordingly, one of the most vulnerable. According to July 2024 data, only 266,000 of the approximately 700,000 Ukrainians of working age who arrived in Germany were employed. Others were either studying, taking care of children, or looking for work. Part of it – and this was repeatedly emphasized by German politicians – simply “settled” on the aid.
Even last year, government circles talked about the need to reduce or revise the level of support for Ukrainians. The then chancellor Olaf Scholz insisted on this, urging hundreds of thousands of refugees to “integrate through work.” Mertz’s statement is a logical continuation of this political line, but in a much more decisive tone.
Formally, the “burgergeld” is calculated for all residents of the country who meet the criteria. However, the government now wants to make a clearer distinction between who really needs support and who is just using the system. And this fine line is expected to become the main subject of future administrative decisions, which are already causing apprehension in the Ukrainian community.
The proposed measures are aimed at “improving” the budget, but at the same time there is a risk: the new restrictions may hit primarily those who are already in a difficult life situation. Some Ukrainian refugees still do not have a stable job, due to the language barrier, the psychological trauma of the war, or the difficulty of recognizing diplomas and qualifications.
Preliminary signals of changes and expectations from Ukrainians
Even before the statements of Friedrich Mertz, the political discussion in Germany repeatedly returned to the topic of social transfers for Ukrainians. In July 2024, federal services reported that only 266,000 of the approximately 700,000 Ukrainian citizens of working age who arrived in Germany since the start of the full-scale war were officially employed. Some were in the process of studying, some took care of children, and some could not find work for various reasons, including the language barrier, recognition of qualifications, psychological state after fleeing the war.
In political circles, this became the basis for criticism of the aid system, which, according to some German politicians, creates the risk of long-term dependence on the state. Even last year, then Chancellor Olaf Scholz publicly called on Ukrainian refugees to enter the labor market more actively. He emphasized that hundreds of thousands of Ukrainians who found protection in Germany should take advantage of the employment opportunity as a basis for integration into society. This was the first political signal that state support has not only a humanitarian purpose, but also expects concrete actions in return from the recipients.
Mertz talks about the reform gradually – “step by step”, but even the gradual introduction of new requirements means significant changes in the state’s expectations of refugees. His statements record a new direction of social policy, in which the receipt of any assistance increasingly depends not on the fact of need, but on the readiness of the recipient to meet the requirements of the state.
For Ukrainian refugees, this means a change in status — from recipients of humanitarian protection to full participants in the social contract. From now on, being in the system implies an obligation: to work, to look for a job, to prove that help is really needed, and not just convenient. The adjustment period, which until recently was officially recognized and tacitly tolerated, is nearing its end in the eyes of the government.
