Germany plans to move Ukrainian refugees arriving after April 1 onto asylum-seeker benefits, reducing relative payments compared with the current Bürgergeld system, as part of an asylum reform.

Existing Bürgergeld recipients will keep their benefits until their approval expires, but no longer beyond three months after the new law takes effect.

In October, about 1.26 million Ukrainian war refugees were in Germany, with roughly 700,000 eligible for Bürgergeld and about 240,000 in work; 2024 refugee payments totaled around €6.3 billion.

Analysts question the financial logic, arguing long-term savings would be offset by higher administration costs and slower integration into the labor market.

Critics from Greens, integration officials, and opposition parties describe the plan as politically and socially harmful, potentially hindering integration and increasing bureaucracy; some dismiss it as a Schnapsidee.

Integration Commissioner Natalie Pawlik, Greens, Caritas, and others warn the reform risks derailing refugee integration and funding for employment programs.

Labor Minister Bärbel Bas opposes the changes in principle but supports implementing the agreed rules as laid out in the coalition pact.

Bas expresses personal reservations yet backs the policy due to coalition commitments and planned implementation.

The reform shifts incentives toward labor market participation by requiring job seeking and narrowing Jobcenter roles, while maintaining advisory services through the Federal Employment Agency.

Responsibility for integration shifts from Jobcenters to social welfare offices, with the Federal Employment Agency continuing to assist in job placement.

The aim is to accelerate work integration, reduce transfers, and sustain integration efforts via language courses and job placement, under a reform that changes who administers benefits.

Budget implications include transferring costs to states and municipalities, with flat-rate compensation under consideration; final approval depends on Bundesrat consent.