Newly arrived Ukrainian refugees in Germany are to be denied access to the country’s welfare benefit scheme under plans from Chancellor Friedrich Merz’s government.

A draft bill seen by dpa on Thursday proposes withdrawing eligibility for the citizen’s income for Ukrainians who arrived in Germany after April 1, 2025.

Instead, they would be granted the same payments reserved for asylum seekers.

The move would see payments for a single person cut from €563 ($654) to €441 per month, although the difference would likely be made up in other benefits.

Merz’s coalition agreed on the step in negotiations following February’s parliamentary election, aiming to encourage employment among Ukrainian refugees.

“This will encourage the integration of refugees from Ukraine into the labour market and the host society,” the draft bill states.

The new regulation is to be given the green light by the Cabinet next week, according to government circles.

In October, around 1.26 million Ukrainian war refugees were living in Germany, compared to 1.18 million a year earlier. The rise is largely due to increasing numbers of young men leaving Ukraine after an exit ban was lifted in August.

Around 700,000 Ukrainians are entitled to citizen’s income, including 200,000 children, with some €6.3 billion paid out to Ukrainians in 2024.

According to the Institute for Employment Research, around 242,000 refugees from Ukraine were in work in the fourth quarter of 2024.

Last year, 461,000 people in Germany received asylum seekers’ benefit.