German upper house blocks replacing jobless benefit with basic income

The upper house of the German parliament has blocked a government bill aimed at providing a basic income to certain categories of people currently drawing unemployment benefit, reported dpa.

The Bundesrat, the members of which are drawn from the 16 states, on Monday rejected the measure, dubbed Bürgergeld, during a special session in Berlin, preventing it from taking effect from the start of next year as planned by the centre-left coalition government.

The opposition conservative parties oppose the measure, which would replace unemployment benefit paid out to the long-term jobless, known in Germany as Hartz IV.

Employment Minister Hubertus Heil, a member of the Social Democrats (SPD), the largest party in the three-way coalition, had announced before the Bundesrat vote that the government would call on the committee that mediates between the two houses of parliament, with a view to finding a compromise.

The measure has to be approved by the end of November if it is to go into force at the start of 2023.

While accepting a rise in the basic long-term jobless benefit, opposition parties are blocking moves to ease pressures on the jobless to find work during the first six months of unemployment.

They also object to the levels of assets and size of home to be permitted for recipients.