Compulsory Obligation for New Citizens Post-2026
In a significant move towards modernising and streamlining social benefit payments, the German government has announced that from the beginning of 2026, the cash payment of Citizen's Allowance (Bürgergeld) by check will be officially discontinued. This change is aimed at making payment transactions more secure, efficient, and modern.
People currently receiving Citizen's Allowance who are used to receiving cash payments by check will need to adapt to alternative options to avoid potential cash problems. The key alternatives for avoiding cash liquidity issues include:
- Bank transfers (Überweisung) directly to their bank accounts, which is the standard and most secure method for social benefit payments in Germany. If you already have a bank account, ensure it is active and up-to-date.
- For those without a bank account, recipients can open a basic bank account (Basiskonto). Banks in Germany are required to offer these accounts to everyone, including people receiving social benefits. This enables them to receive electronic payments without fees.
- The use of electronic payment cards or prepaid cards issued by welfare agencies can also be an option. These cards can be loaded with the allowance amount and used like debit cards for purchases or cash withdrawals at ATMs.
- In exceptional cases, welfare offices might provide temporary cash payments or coordinate with local social services to assist recipients in accessing funds safely.
It is advisable for recipients to consult their local Jobcenter (welfare office) well before the January 2026 deadline to ensure they have access to appropriate electronic payment methods and to avoid cash liquidity problems after the discontinuation of check payments.
It is important to note that all evidence, including rejected applications, may be requested by the responsible job center. If a chosen bank does not open a basic account, it is advisable to try another institution first. In the event of difficulties, documents will be helpful in later steps if legal assistance is required. If that doesn't work, experts recommend that those affected contact a consumer arbitration board.
This change is part of ongoing digitization trends in German public payments, including moves to eInvoicing and electronic transactions in various sectors. As of now, no official information indicates new cash-equivalent instruments replacing check payments directly, but cashless electronic transfers and bank accounts are the standard alternatives in line with Germany’s digitalization and financial inclusion efforts.
Approximately 5.5 million people currently receive Citizen's Allowance. The change is aimed at ensuring a more secure and efficient payment system for all. It is crucial for those affected to prepare and adapt to the new system to ensure a smooth transition.
Consumers who currently receive Citizen's Allowance and have been receiving cash payments by check will need to transition to more modern payment methods to avoid cash liquidity issues next year, as bank transfers directly to their bank accounts will become the standard method for social benefit payments. For those without a bank account, opening a basic bank account will enable them to receive electronic payments without fees.
Although cashless electronic transfers and bank accounts are the standard alternatives in line with Germany’s digitalization and financial inclusion efforts, individuals who encounter difficulties should consult their local job center or seek help from a consumer arbitration board. This modernization in personal-finance matters is part of ongoing digitization trends in German public payments.
