The Federal Court of Auditors has sharply criticized the federal government’s draft law on citizens’ income. The reason is the two-year waiting period, during which the assets of recipients are not taken into account and housing and heating continue to be paid for, reports “t-online” and refers to a report that went to the Budget Committee of the Bundestag.

The focus is, among other things, on the so-called protective assets. It is “disproportionately high,” says the Federal Court of Auditors. It is 60,000 euros for the applicant, every other person in the same benefit community still has an allowance of 30,000 euros. Here, too, the Federal Court of Auditors expresses criticism: “The federal budget should not be burdened with the receipt of benefits from people who can generally be assumed to have sufficient ability to pay for themselves.”

The paper, which is available to “t-online”, also says: The help from the citizen’s income goes “far beyond the relief granted in the Covid 19 pandemic” and further: “the Federal Court of Auditors sees a contradiction to the still applicable Objective of SGB II to ensure temporary support in case of need.”

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The Federal Court of Justice therefore recommends a “significantly shorter waiting period”. The proposal: the regulations should be limited and evaluated after the end of the period before they then take effect permanently.

The financial experts also see it as a problem that it is sufficient for applicants to state in a self-declaration that they do not own any assets. There is a great fear that fraudulent activities will follow. “The omission of any more specific information opens up possibilities for take-away and abuse,” the report continues. The Federal Court of Auditors therefore requires that the recipients provide specific information on their assets.

The federal government’s draft law also provides for a waiver of sanctions in the first six months. Such sanctions are to be used if entitled recipients miss important appointments or do not report changes in their living environment or their financial situation in good time. “Examination findings show that the preventive effect of sanctions already has a positive effect on the cooperation between those entitled to benefits and the job center, the mediation process and the duration of the receipt of assistance,” according to the experts’ assessment.