Innovations through the Citizen's Income Act (1)

24 January 2023

Parental leave schemes

  • Waiting periods for assets: Increased sheltered assets for the first reference year from the beginning of the month for which benefits are received for the first time (originally oriented to "social protection regulation"): - Up to € 40,000 sheltered assets plus € 15,000 for each additional person in the household, no examination of real estate, motor vehicle, etc. - Up to € 5,000 for each additional person in the household, no examination of real estate, motor vehicle, etc.
  • Waiting periods for accommodation costs: Assumption of the special regulations from the social protection package for the first reference year (see above § 22 Para. 1 SGB II, § 35 Para.1 SGB XII):
    • The actual expenses for accommodation are recognised.
    • Heating costs are only recognised to a reasonable amount (orient. to m²).

Accommodation costs

  • Within the waiting period, higher than reasonable accommodation costs are only recognised as need after a move if the office has agreed to the move in advance.

Assets

Increase of the SGB II assets (§ 12 par. 2 and 4 SGB II):

  • 10,000 € per person (assets can be transferred to another person in the joint household, only in SGB II)
  • Improved old-age provision for all persons entitled to benefits only in SGB II - old-age provision assets of € 8,000 for each year of self-employment or part thereof as assets not to be taken into account /
  • appropriate motor vehicle / means: € 7,500 (§ 12 par. 1 no. 2 SGB II)
  • higher thresholds for property ownership (130 m² Etw/140 m² house, plus 20 m² for each person exceeding four-person household, plus hardship clause

Increase of the SGB XII sheltered assets

  • 10,000 € per adult person (children may keep 500 € unchanged)
  • and "appropriate" car (= 7,500 €) (§ 90 Para. 2 No. 10 SGB XII) / previously protected assets: 5,000 € + 500 € children and no car protected

In the case of citizens' benefit applications for one month due to one-off increased expenses for heating (taking into account any existing income), no waiting period applies with regard to asset protection. It is presumed that there are no realisable assets if this is stated in the application.

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