Demanding and promoting principles under SGB II basic income scheme

4 Demanding and promoting principles under SGB II (basic income scheme) 

Although basic income support for needy jobseekers is foremost a genuine social policy programme to avoid poverty, it has a strong focus on the labour market. With Hartz IV the interface of social and labour market policy has been redefined and the traditional divide between both policy areas eroded. It focuses on need (not on unemployment as such) and on interventions to reduce need - with attempts at labour market integration featuring prominently as a promising way to end up benefit dependency. 

Pursuant to 19 SGB II, UB II consists of benefits to secure subsistence, including reasonable costs of accommodation and heating, and a fixed-term supplementary allowance under 24 SGB II, which is to cushion the transition from unemployment assistance to UB II. It provides two thirds of the difference between UB I and UB II for 12 months and one third for an additional year. 

The normal benefit under 20(2) and (4) SGB II is a lump-sum amount that is supposed to cover all living expenses. From 1 July 2008, this amount has been fixed at a standard rate of EUR 351 throughout the federal territory. Benefits for accommodation and heating are specified in 22 SGB II. Their amount is equivalent to the actual expenses, provided these are reasonable. 

This standard payment is higher than the social assistance benefit (EUR 295 since July 2004). For children the standard payments are lower. Nevertheless, SA benefits included more additional payments than UB II. In comparison to former unemployment assistance (on average EUR 550 in 2003 in Western Germany), UB II is less generous. This should result in pressure on the jobless to take on work. However, it should be taken into account that, whereas the recipients of UB 

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