Nr. 9/2024
When calculating basic security benefits for job seekers (SGB II – formerly “Hartz IV”, currently Citizen’s Allowance), grants that someone else provides without having a legal or moral obligation to do so are not to be taken into account as income. This applies in any case if these grants do not have such a positive effect on the situation of the beneficiaries that the basic security benefits would not be justified in addition. The resident energy allowance granted by the city of Kassel in 2022 did not exceed the relevant limit in the case of a family of six. This was decided in a ruling published today by the 6th Senate of the Hessian State Social Court.
Job center reduces Hartz IV benefits due to resident energy money
In July 2022, the city council of Kassel passed the “Head up, Kassel! – Resident Energy Money (EEG)” program, which was intended to alleviate the burden of increased energy costs. All residents were granted a one-time, non-repayable grant of €75 upon application.
A family with 4 underage children also received this allowance. However, the job center then reduced their basic social security benefits (still known as “Hartz IV” in 2022). The EEG serves the same purpose as the benefits under the SGB II and should therefore be considered as income.
The affected family, however, pointed out that this was a dedicated payment. The Kassel City Council also believes that taking the EEG into account is grossly unfair and represents a particular hardship, which is why the city, as the responsible provider of social welfare benefits (SGB XII), does not count the EEG as income.
The EEG is not to be considered as income due to its low amount
The judges of the Hessian State Social Court decided that the EEG should not be counted as income. It was a benefit that the city of Kassel had granted to all citizens without there being any legal or moral obligation to do so.
Taking the EEG into account as income is not grossly unfair because the job center has covered the higher heating costs and the higher citizen’s allowance granted since January 2023 offsets the increased electricity costs.
However, the situation of the plaintiff family was not so positively influenced by the EEG that basic security benefits were not justified in addition. The benchmark in this respect is that the allowance does not exceed 10% of the respective standard requirement. If a one-off payment is to provide relief over several months, the amount must be divided accordingly. In the case of the plaintiffs – even if the EEG is only distributed over the months October to December 2022 – the limit of 10% is not exceeded. The EEG should therefore not be taken into account as a reduction when calculating the basic security benefits.
(Ref. L 6 AS 310/23 – The appeal was allowed. The judgment is under
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