Bürgergeld Becomes Basic Income Support: What Changes in 2026
On 1 July 2026, the Neue Grundsicherung ("new basic security") reform came into force. The German Bundestag had passed it on 5 March 2026. The most visible change is the new name: Bürgergeld (citizens' income) becomes Grundsicherungsgeld (basic income support). The relevant section of the German Social Code Book II (SGB II) is now titled "Grundsicherung für Arbeitsuchende" (basic security for jobseekers). But behind the renaming lie substantial changes — especially to the asset check, housing costs, and sanctions.
This guide explains step by step what has changed, when the new rules take effect, and who benefits from the reform and who does not. You can calculate your own entitlement any time with our Basic Income Support Calculator.
Just a New Name? The Renaming in Detail
Grundsicherungsgeld fully replaces the term Bürgergeld. In practice, however, a transition rule applies: authorities may continue to use the term Bürgergeld until 31 December 2026 and issue notices accordingly. So if you receive mail from the Jobcenter in the coming months still labelled Bürgergeld, there is no need to worry — it refers to the same benefit.
Importantly, the renaming does not change the responsible body. The Jobcenter remains the central point of contact for all benefits, and the application process stays the same.
The 2026 Standard Rates Remain Unchanged
Some good news first: the standard rates were not cut by the reform. For 2026, the following monthly amounts continue to apply:
Standard rate level 1 — single people and single parents: €563. Level 2 — partners in the household: €506 each. Level 3 — young adults 18 to 24 living with parents: €451. Level 4 — adolescents 14 to 17: €471. Level 5 — children 6 to 13: €390. Level 6 — children 0 to 5: €357.
On top of these come the appropriate costs of accommodation and heating (KdU), as before. The standard rate alone therefore says little about the actual total entitlement — housing costs often make up the larger share.
The Biggest Change: Age-Based Asset Exemptions
The most important substantive change concerns the asset check. Previously, Bürgergeld had an asset grace period (Vermögens-Karenzzeit): in the first year of benefits, €40,000 was protected for the first person plus €15,000 for each additional person. After the first year, the exemption dropped to a flat €15,000 per person.
This asset grace period has been abolished entirely. In its place, from the very first day of benefits, an age-based exemption applies, calculated individually for each person in the household and then added up:
Up to 30 years: €5,000. 31 to 40 years: €10,000. 41 to 50 years: €12,500. 51 years and older: €20,000.
An example: a couple, both 45, with a 10-year-old child, has a total exemption of 12,500 + 12,500 + 5,000 = €30,000. A single 55-year-old, by contrast, reaches €20,000. A 28-year-old with no dependants may only hold €5,000 before assets start to count.
In addition — as before — an appropriate vehicle (up to €15,000 in value) per adult, a self-occupied property of appropriate size, retirement savings, and appropriate household goods remain protected. To check whether your assets fall within the new limits, use the Basic Income Support Calculator.
Who Wins and Who Loses on Assets?
The new rules affect people differently. Older people aged 51 and over are better off, with €20,000 per person, than under the old permanent rule of €15,000. Younger people and career starters under 41, by contrast, may keep considerably less — for them the reform is a tightening. Hit hardest are new applicants with some savings who would previously have benefited from the €40,000 first-year grace period. That grace period no longer exists.
Housing Costs: Grace Period Stays, but With a Cap
Housing costs have also changed. The first-year grace period formally remains — actual housing costs are initially covered as before. What is new, however, is a ceiling: during the grace period, costs are capped at 1.5× the local appropriateness limit.
An example: if the appropriate warm rent in your district is €600, the Jobcenter covers a maximum of €900 (600 × 1.5) during the grace period. Anyone with a particularly expensive flat must bear the difference themselves — unlike before, when practically any rent was accepted during the grace period.
Exceptions to this cap apply in cases of hardship and for households with children. Families with children therefore continue to be supported during the grace period without this 1.5× cap. After the grace period ends, the rule is as before: only the appropriate rent is covered, and the Jobcenter can start a cost-reduction procedure.
Tougher Sanctions From 2026
The sanction rules were tightened significantly. The former, gradually escalating ladder of sanctions is gone. Instead, the following applies:
For a breach of duty — for example, refusing a reasonable measure or job — the standard need is cut by a flat 30 percent for three months. There is no more graduated increase; the 30 percent applies immediately.
For a missed appointment (Meldeversäumnis), a repeat can trigger a 30 percent cut for one month. Anyone who misses three appointments in a row without excuse is deemed "not reachable": in that case, benefits can be stopped entirely.
For wilful refusal of reasonable work, a cut of up to 100 percent of the standard need has been possible since 23 April 2026. This most severe sanction was the first building block of the reform and took effect even before the actual renaming.
Importantly, in all cases the contributions to health and long-term care insurance remain protected. No one loses health insurance coverage through a sanction. Housing costs, too, are generally not affected by the standard-rate cuts.
The Reform Timeline at a Glance
The Neue Grundsicherung was not introduced on a single day, but in several steps:
23 April 2026: the tightened sanction takes effect — up to a 100 percent cut of the standard need for wilful refusal of reasonable work.
1 July 2026: the main reform — renaming to Grundsicherungsgeld, age-based asset exemptions, the 1.5× cap on housing costs during the grace period, and the new sanction and missed-appointment rules.
1 August 2027: the planned entry into force of separate rules for young people. These changes mainly concern younger recipients and only take effect during 2027.
Until 31 December 2026: the transition period during which authorities may continue to use the term Bürgergeld.
Who Is Affected by the Reform?
In principle, the new rules apply to all roughly 5.5 million people who receive Grundsicherungsgeld — both new applicants and ongoing cases. The changes are most noticeable for three groups: first, younger applicants with savings, for whom the exemption falls; second, people with high housing costs, who now have to watch the 1.5× limit; and third, recipients who miss appointments or cooperation obligations and now face noticeable cuts more quickly.
Unchanged, by contrast, are the basic eligibility requirements: anyone who is capable of working and in need of assistance, between 15 and retirement age, and habitually resident in Germany can continue to receive benefits.
Conclusion: A Renaming With Real Consequences
The Neue Grundsicherung is more than a mere renaming. While the standard rates stay stable in 2026, the asset and housing-cost rules tighten, especially for younger people and households with high rents. At the same time, breaches of duty and missed appointments are sanctioned more harshly. Older recipients, on the other hand, benefit from a higher asset exemption.
Whether and how much basic income support you are entitled to depends on your individual situation — household size, income, rent, and assets. Use the Basic Income Support Calculator to estimate your likely entitlement under the new rules, free and without obligation.
Note: This article is for general information only and does not replace individual legal advice. Only your responsible Jobcenter can provide binding information.