How to respond to the job center

Around 5.5 million citizens in Germany receive citizen’s benefit. But what does this mean for rental costs and what happens when there is a process to reduce costs?

Hamm – Citizens’ money has been introduced in Germany since the beginning of 2023. There are currently around 5.5 million people who take advantage of this state support, as the Federal Statistical Office reports. According to the Federal Ministry of Labor and Social Affairs (BMAS), the group of recipients of citizen’s benefit consists not only of people who are able to work and receive benefits, but also of members of their communities who are unable to work, such as children or sick and incapacitated family members. The federal government planned to reform citizens’ money until the end of the traffic light coalition, but its implementation is now uncertain.

Recipients of citizen’s money regularly receive letters from the job center. These can range from provisional approval notices to notices of sanctions or changes to notices of cancellation. Requests to reduce housing costs may also be received by mail. What this means for recipients of citizen’s money and what measures they can take is explained below.

The upper limit for housing costs for recipients of citizen benefit varies depending on the city and municipality

The annual calculation of standard requirements is stipulated by law. As the BMAS informs, citizens’ benefit or social assistance recipients will receive benefits in the same amount in 2025 as in the previous year. In addition to a standard rate, according to the employment agency, the job center usually also covers “the costs of accommodation and heating at an appropriate level”. The upper limit for rent is set individually for each city and municipality.

In Munich, the upper rent limit for a person with an apartment size of 50 square meters is 849 euros. In other German cities, the guidelines for a person with the same housing needs are as follows:

In the first year of receiving benefits, the appropriateness of the accommodation costs is not checked (waiting period). However, heating costs are not covered by the waiting period. These will only be recognized in the appropriate amount.

Initiation of a procedure to reduce costs – what this means for recipients of citizen’s money

After the waiting period has expired, if the rent is too high, the job center can initiate a procedure to reduce the costs. However, according to the gegen-hartz.de portal, a request to reduce costs must always be made with a notice period of six months (transitional period) if the costs for accommodation are “unreasonable”. The tenant then has six months to reduce the costs. Unreasonable costs for accommodation and heating will continue to be covered by the job center after the cost reduction process has been initiated.

However, the job center must show possible measures to reduce costs. This can be done, for example, by subletting a room, reducing additional costs or moving to a cheaper apartment. However, the job center’s request to reduce costs must be kept general. According to the portal, a move should not be condemned or forced.

What recipients of citizen’s money can do to reduce costs in a procedure

Recipients of citizen’s money have the following options to respond to a procedure to reduce costs (sources: gegen-hartz.de, buergergeld.org):

• Pay the difference yourself: The job center covers the rental costs up to the applicable rent cap. The person entitled to benefits or community of needs must pay the excess amount themselves.
• To object: If the underlying rent index or the specified rent upper limit is out of date, an objection can be submitted. To do this, however, the beneficiary must provide proof of the benefits, which should usually be done with the support of a social law lawyer.
• Cost reduction not possible: If, despite intensive efforts, no cost reduction can be achieved – for example because no suitable apartments are available or viewings have been unsuccessful – the cost reduction process will be suspended. In such cases, the job center will continue to cover the actual housing costs, provided evidence of the apartment search (e.g. inspection reports) is provided.
• Uneconomical move: If a move is necessary to reduce rental costs, the economic viability of the project is examined. The moving costs and the subsequent costs are weighed against the current, unreasonable rental costs.
• Moving not possible: If you are seriously ill or disabled, moving may be unreasonable. This unreasonableness must be clearly demonstrated to the job center, for example by medical certificates or psychological reports.

If the costs of accommodation could not be reduced within the standard transition period and no evidence of the reduction in costs or reasons that could speak against it could be presented, the authority will reduce the benefits for the costs of accommodation. And only pay the appropriate accommodation costs. The recipient of citizen’s money will then have to “in the future cover the unreasonable part of the accommodation costs from the standard requirements”, so buergergeld.org.

Recipients of citizen’s benefit who do not fulfill their obligations without good reason may have their benefits reduced. In the future, they could be obliged to take one-euro jobs if, for example, they have failed to show up for appointments at the job center several times. (vw)