bFederal Finance Minister Christian Lindner expects that citizens' money will not be increased next year. The standard rate rose sharply on January 1st of this year, said the FDP politician on Thursday evening in the ZDF program “Maybrit Illner”. “I say it has risen disproportionately because when it was set, a completely different inflation rate was assumed for January 2024.” According to his expectations, the consequence will be that there will be a zero round on January 1, 2025 , “in order to reincorporate the disproportionate increase”.
At the beginning of the year, citizens' money had increased by an average of around 12 percent compared to last year. For single people, this means an increase of 61 to 563 euros per month. Adults who live with a partner receive 506 euros. For children and young people, the rates are between 357 and 471 euros, depending on age.
The standard rate is adjusted annually
The reason for the increase is the increased cost of living, which is taken into account when calculating the standard rates. The standard rate for citizens' money is adjusted annually to prices and wages and also takes inflation into account.
Federal Labor Minister Hubertus Heil (SPD) also pointed this out in the magazine “Spiegel”. “Since the prices that are crucial for the subsistence level, such as food and electricity, rose sharply last year, there was a significant adjustment in the citizen’s allowance,” he said. “If inflation falls significantly now, the next adjustment will be correspondingly low.” The Federal Statistical Office will provide the necessary data in the summer.
Finance Minister Lindner recently called for the method for calculating citizens' money to be reviewed so that inflation is not overestimated.
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