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Germany plans to cut benefits for newly arrived Ukrainian refugees, draft law shows

Published by Global Banking & Finance Review

Posted on August 6, 2025

2 min read

· Last updated: January 22, 2026

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Germany plans to cut benefits for newly arrived Ukrainian refugees, draft law shows
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BERLIN (Reuters) -Germany's coalition government plans to cut state benefits for newly-arrived Ukrainian refugees, a draft law seen by Reuters showed on Wednesday, which could result in 100 euros ($

Germany to Reduce Benefits for New Ukrainian Refugees Starting 2025

BERLIN (Reuters) -Germany's coalition government plans to cut state benefits for newly-arrived Ukrainian refugees, a draft law seen by Reuters showed on Wednesday, which could result in 100 euros ($116)less per month per refugee, according to estimates.

Ukrainian refugees arriving in Germany benefit from the European Union's Temporary Protection Directive, which enables them to directly claim welfare benefits without going through the asylum process.

Under the draft bill, Ukrainians arriving in Germany from April 1, 2025, would no longer receive Citizen's Allowance but instead receive benefits under the Asylum Seekers' Benefits Act, which are lower.

There are around 1.25 million refugees from Ukraine living in Germany, and around 21,000 entered the country for the first time in connection with the Russian invasion between April 1 and June 30, 2025, according to government figures.

The draft law requires cabinet and upper house of parliament approval before coming into effect by the end of the year.

Germany has long been debating what level of support Ukrainian refugees should receive, as it struggles to make savings on welfare spending, with Bavarian Premier Markus Soeder on Sunday calling for all Ukrainian refugees, not just new arrivals, to be excluded from the higher benefits.

Approximately 64.1% of the labour agency registered Ukrainian nationals in July 2025 were not employed, including those jobless, in courses, or receiving employment-related support.

($1 = 0.8590 euros)

(Reporting by Riham Alkousaa and Holger Hansen; Editing by Alexandra Hudson)

Key Takeaways

  • Germany plans to cut benefits for Ukrainian refugees starting 2025.
  • New arrivals will receive lower benefits under the Asylum Seekers' Benefits Act.
  • The draft law requires cabinet and parliament approval.
  • Bavarian Premier suggests excluding all Ukrainian refugees from higher benefits.
  • 64.1% of registered Ukrainian nationals were not employed in July 2025.

Frequently Asked Questions

What benefits will newly arrived Ukrainian refugees lose?
Under the draft bill, Ukrainians arriving in Germany from April 1, 2025, would no longer receive Citizen's Allowance but instead receive benefits under the Asylum Seekers' Benefits Act, which are lower.
How many Ukrainian refugees are currently in Germany?
There are around 1.25 million refugees from Ukraine living in Germany, with approximately 21,000 entering the country for the first time between April 1 and June 30, 2022.
What is the status of the draft law regarding refugee benefits?
The draft law requires cabinet and upper house of parliament approval before coming into effect by the end of the year.
What percentage of registered Ukrainian nationals were unemployed in July 2025?
Approximately 64.1% of the labour agency registered Ukrainian nationals in July 2025 were not employed, including those jobless, in courses, or receiving employment-related support.
What has been the debate surrounding support for Ukrainian refugees?
Germany has long been debating what level of support Ukrainian refugees should receive, as it struggles to make savings on welfare spending.

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