Germany plans to reduce state benefits for newly arrived Ukrainian refugees under draft legislation approved by the Cabinet on Wednesday.

Under the proposal, Ukrainians arriving after April 1, 2025 would no longer receive the country’s main unemployment and social-support payment, known as Bürgergeld.

Instead, those in need would be covered under the lower-level benefits provided to asylum seekers.

The draft, put forward by Labour Minister Bärbel Bas, still requires approval from parliament before it can take effect.

Critics warn the shift could hamper efforts to integrate Ukrainians quickly and sustainably into the labour market. Members of the centre-left Social Democrats, which is part of Chancellor Friedrich Merz’s governing coalition, have also expressed resistance.

If the legislation passes, benefits for Ukrainians arriving after April will be lower than for those who entered earlier. Under the Asylum Seekers’ Benefits Act, a single adult currently receives €441 ($508) per month, compared with €563 under the Bürgergeld scheme.

“This puts them on an equal footing with people who come to us as refugees from other countries and for other reasons,” the Labour Ministry said in a statement.

In October, 1.26 million Ukrainian war refugees were living in the country, compared to 1.18 million a year earlier.

Around €6.3 billion in Bürgergeld payments was distributed to the Ukrainian refugees in 2024.