Germany changes benefits for Ukrainian refugees reducing amount of financial aid

Migration was a difficult topic for the Christian Democratic/Social Union (CDU/CSU) and Social Democrats (SPD), which nearly threatened to capsize recent coalition negotiations.

However, the three parties compromised on several aspects, including the controversial policy of how to support Ukrainian refugees.

Under the previous coalition led by Olaf Scholz, the German government allowed refugees fleeing from Ukraine to receive citizen's benefit, also known as Bürgergeld, which is normally reserved for permanent German residents.

From 1 April 2025, Ukrainian refugees will no longer receive citizens benefit, an instead be switched to the asylum benefit.

Less money for Ukrainian refugees

Refugees from Ukraine were the first to be eligible for Bürgergeld and were granted residency status within the EU without needing to apply for asylum first, as was formerly the case with refugees arriving from countries like Syria and Afghanistan.

Under the Bürgergeld allowance, single people receive €563 per month but asylum seekers get €441 loaded onto a payment card.

Refugees also receive less money if sharing accommodation, although housing costs are still covered.

Bürgergeld is financed by taxes from the federal government, whilst asylum support comes from states and municipalities.

Work permit questions

One of the main reasons behind the previous coalition's decision to grant refugees from Ukraine residency status, was that it allowed them to receive work permits faster.

However, it's currently unclear whether classifying Ukrainians as asylum seekers will affect more than just their benefits and also have an impact on their right to work in Germany.

Under the asylum seekers framework, refugees are not permitted to work for the first three months and face additional restrictions after that.

According to the Federal Employment Agency, almost 300,000 people from Ukraine currently work in Germany.

Around 1.2 million Ukrainian refugees live in Germany, of which 63% are women.

Around 360,000 are children, who are not eligible to work.

According to the agency, 32% of Ukrainians are currently in regular or part-time employment but many are juggling work with integration and language courses.

The number of refugees fleeing to Germany has dramatically declined over the years, with the majority arriving in 2022, the year Russia launched its full-scale invasion.

Ukrainians and their families are still generally granted protection in Germany, as in other EU states, until 4 March 2026.

Under these protections, they are automatically granted residency status alongside associated rights.