New study on basic security: The errors from the citizens' money debate

If the state gives too much money to the long-term unemployed, it prevents them from looking for new work. With this argument, among other things, the Union 2025 justified the restriction on citizens' money, which was discussed emotionally at the time. The federal government then introduced the new, more limited basic security. But now a study shows that there is definitely material motivation for one's own work - everywhere in Germany.

Those who work at the minimum wage have significantly more money at their disposal than people who only receive basic income. This is the result of the new study by the trade union Hans Böckler Foundation entitled “Will work in Germany still be worth it in 2026?” On average in Germany, “the income advantage is around 623 euros per month for a single person who works full-time at the minimum wage,” write the foundation’s experts. In principle, nothing has changed in this comparison as a result of the switch from citizen's money to basic security.

Single parents also have more money at their disposal: A single parent “with a five-year-old child who works full-time at the minimum wage has around 757 euros more available on average than when receiving basic security.” A similar advantage arises for a couple with two underage children, according to the study. In addition, the financial advantage of one's own work increases with the number of children. An explanation for this: The child allowances reduce the tax. The foundation processed the results for all German urban and rural districts.

The data shows the wage gap between the low state social benefit, which is intended to ensure the subsistence level, and the lower limit of wages that employees can earn themselves. If this wage gap is too small, the basic security is too generous, is often the argument from the conservative and right-wing side. The centre-left-oriented trade union foundation, on the other hand, emphasizes: those who work earn considerably more. In this logic there is no reason to reduce social benefits.

“The dispute over citizens’ money last year was an impressive example of how social debates should not be conducted,” says Bettina Kohlrausch, scientific director of the Böckler Institute WSI. “Prejudices often outweigh facts.”

The wage gap varies regionally. For example, it is rather low in large cities such as Frankfurt am Main and Munich. That has something to do with the very high rents there. The respective city covers the costs of accommodation to a certain extent for those who receive basic security - which increases the level of social benefits.

You also get more with a minimum wage than with basic security because employees can apply for additional social benefits, such as state housing benefit, which subsidizes the high housing costs. In addition, there is child benefit, child allowance and maintenance advance for single parents. These are all benefits that are intended to prevent employees with low incomes from being dependent on basic security. The regulations for so-called top-ups also play a role: Anyone who still receives basic security but is already working at the same time can keep part of the wages they earn. This should also motivate you to work your way out of social benefits.

Kohlrausch warns that it could have a negative impact if the Union-SPD government cuts housing benefit as planned for reasons of savings: “That would tend to reduce the wage gap, especially for families.”