1. Decisions of the state social courts on citizen's income (SGB II)
1.1 – LSG BW, judgment of 11/29/2024 – L 12 AS 2865/24 –
Citizen's allowance: Job center does not pay for a PC/printer for creating job applications
The purchase of a PC and printer for professional integration is not necessary, as the self-service information facilities in the employment agency's career information center are available free of charge and can be used for creating applications.
Initial equipment (§ 24 para. 3 SGB II) is not an option and a hardship allowance (§ 21 para. 6 SGB II) is excluded if the applicant does not prove why a loan would be unreasonable.
Source: www.socialgerichtsabilities.de
Legal tip regarding Hartz IV – still applies today to citizen's income:
North Rhine-Westphalia State Social Court, 23.04.2010 – L 6 AS 297/10 B – Hartz IV recipients do not receive a PC because they are not eligible for initial apartment furnishings.
LSG Saxony-Anhalt, decision of 28.06.2018 – L 4 AS 886/17 NZB – legally binding – The purchase of a printer does not constitute an additional need within the meaning of § 21 para. 6 SGB II
1.2 – LSG Bayern, decision of 22.11.2024 – L 7 AS 318/24 NZB –
Guiding principles www.sozialgerichtsbarkeit.de
I. The right to be heard only guarantees that a party is “heard”, but not “regarded” (cf. inter alia BSG of 16.4.2024, B 12 BA 17/24 B, para. 14 with further references).
II. A deviation from a decision of the Higher Social Court within the meaning of Section 144 Paragraph 2 No. 2 of the Social Courts Act (SGG) only covers a deviation from decisions of the competent appellate court. III. If it is asserted that the prerequisites for issuing a court order were not met, this is not a procedural error justifying the granting of leave to appeal; rather, an application for an oral hearing must be filed pursuant to Section 105 Paragraph 3 of the Social Courts Act (SGG).
1.3 – LSG NRW, judgment of 02/27/2024 – L 2 AS 760/23 – B 4 AS 40/24 AR – www.socialgerichtsbaren.de
ALG 2: No entitlement to SGB 2 benefits in the case of a back payment of ALG 1 amounting to €5000.00
1. A back payment of unemployment benefits amounting to €5,255.12, spread over 6 months, was to be taken into account as income.
2. An exception mentioned in § 11a SGB II aF does not apply.
3. The provision of Section 11a Paragraph 3 Sentence 1 of the German Social Code, Book II (SGB II aF), which he invoked, is also not applicable in the present case.
4. Debts amounting to €13,000 from a student loan cannot be deducted from the back payment (see B 14/7b AS 10/07 R).
Note:
A decision has been made regarding Hartz IV – a different calculation would be applied to citizen's income.
Practical tip – also relevant to Hartz IV
(Lower Saxony State Social Court, judgment of June 13, 2018 – L 18 AS 784/17) – Crediting of back payments of unemployment benefits against benefits under the German Social Code, Book II (SGB II).
The back payment of unemployment benefits is current income, which must be fully taken into account and is not to be divided equally over a period of 6 months in accordance with Section 11 Paragraph 3 Sentence 3 of the German Social Code, Book II (SGB II).
According to established case law of the Federal Social Court (BSG), recurring income is defined as income based on the same legal grounds and received regularly. In the case of one-off income, the transaction is limited to a single payment (BSG, judgments of April 24, 2015 – B 4 AS 32/14 R –, of May 16, 2012 – B 4 AS 154/11 R, of May 7, 2009 – B 14 AS 4/08 R –, of December 16, 2008 – B 4 AS 70/07 R and of July 30, 2008 – B 14 AS 26/07 R –).
Income Tip:
With the introduction of the citizen's income on July 1, 2023, the distinction between recurring and one-off income will be eliminated. Both recurring and one-off income will be considered as income in the month it is received.
Any amount exceeding the required amount in the month of receipt must be added to the assets in the following month.
2. Decisions of the social courts on citizen's income
2.1 – SG Munich, judgment of November 21, 2024 - S 46 AS 1243/23 - www.socialgerichtsabilities.de
Citizen's income: Compensation payment for a local business as asset conversion under SGB II (with reference to BSG, dated 28.02.2024 – B 4 AS 22/22 R – there sale of securities at a now increased market value)
1. A business premises sold by a self-employed person before the initial application for ALG 2 (unemployment benefit II) are considered assets
2. If a restaurant owner gives up his establishment and sells it before the first application for ALG 2 (unemployment benefit II), the compensation payment is an exchange of assets for the value of the establishment and not income.
3. The conversion of the assets tied up in the premises into a redemption payment resulted in monetary assets of €30,000 and, together with the assets of €1,720 already present at the time of the initial application, resulted in total assets that were below the asset allowance of Section 67 Paragraph 2 of the German Social Code, Book II (SGB II), and thus did not eliminate the need for assistance.
2.2 – SG Karlsruhe, judgment of 11/12/2024 – S 12 AS 45/23-
Citizen's allowance: Car repair costs as an integration benefit from the job center
Job centers do not provide free integration services for citizens' benefit recipients if their earnings are too low
Principle www.sozialgerichtsbarkeit.de
From the perspective of the community of solidarity, only an earned income exceeding €130 per month reduces the "need for assistance" of an adult receiving citizen's allowance.
Lower monthly incomes up to €130 cannot justify free job center integration services for adults.
Note:
When would the job center have covered the repair costs for the citizen's allowance recipient?
This would only have been the case if the repair had been sufficiently likely to result in the generation of an earned income that was at least high enough to reduce the need for assistance to secure a livelihood.
In the case of the adult plaintiff, this would have required that he earn more than €130 per month thanks to the repair.
Otherwise, his need for basic social security assistance would have continued unabated.
From the perspective of the community as a whole, only an earned income exceeding €130 per month reduces the need for assistance of an adult receiving citizen's allowance.
Lower monthly incomes up to €130 cannot justify free job center integration services for adults.
Because of the €100 earned income allowance from Section 11b Paragraph 2 Sentence 1 of the German Social Code, Book II (SGB II) and the additional deductible insurance allowance of €30 from Section 11b Paragraph 1 Sentence 1 No. 3 of the German Social Code, Book II (SGB II) in conjunction with Section 6 Paragraph 1 No. 1 of the German Regulation on Unemployment Benefit II (Alg II-V), they are always too low to consider integration benefits as suitable or necessary.
Practical tip
from the Lower Saxony-Bremen State Social Court, decision of 13 May 2015 – L 11 AS 676/15 B ER – Job centers must grant loans for cars in individual cases where job loss is imminent.
1. Section 16f of the German Social Code, Book II (SGB II) constitutes an independent legal basis for claims, which is designed as a general clause.
2. However, with regard to the possible content of the benefits, the benefits conceivable under Section 16f of the German Social Code, Book II (SGB II) must be measured against Section 20 of the German Social Code, Book II (SGB II).
3. Decisions of the State Social Courts on Employment Promotion Law (SGB III)
3.1 – LSG North Rhine-Westphalia, 13.05.2024 – L 20 AL 201/22 – Appeal allowed
Short-time work allowance: Employer risk in the pandemic.
The employer bears the risk of the timely receipt of the notification of work stoppage by the employment agency if sent by post.
Source: Press release from the LSG NRW: www.lsg.nrw.de
Full text here: www.sozialgerichtsbarkeit.de
4. Decisions of the State Social Courts and Social Courts on Social Assistance (SGB XII)
4.1 – LSG BW, Decision of 13 July 2023 – L 2 SO 3173/22 – www.sozialgerichtsbarkeit.de
Social assistance: Reduction of the standard rate by a flat-rate energy allowance in accordance with Section 27a Paragraph 4 Sentence 1 of the German Social Code, Book XII (SGB XII) when staying in emergency accommodation
Basic income support benefits for the elderly and those with reduced earning capacity: For those living in emergency accommodation, the social welfare provider may reduce the standard benefit rate by a flat-rate energy allowance (here €33.31 per month)
This is because the costs of accommodation and heating are included in the standard allowance, which is actually a necessary expense. The need for household and cooking energy typically arises on a monthly basis and is fully covered by the standard allowance, not just with savings allowances.
Another point addressed in the decision: income generation, crediting and adjustment of income
According to Section 82 Paragraph 2 Sentence 1 Nos. 3 and 4 of the German Social Code, Book XII (SGB XII), contributions to public or private insurance or similar institutions, insofar as these contributions are legally required or reasonable in terms of basis and amount, and especially the necessary expenses associated with generating the income, may be deducted.
There are initially no constitutional concerns that earned income is taken into account more comprehensively when receiving basic income support for the elderly under the German Social Code, Book XII (SGB XII), due to lower statutory allowances, than when receiving basic income support for job seekers (Federal Social Court, judgment of 25 April 2018 – B 8 SO 24/16 R -).
4.2 – LSG Hessen, decision of 27.11.2024 – L 4 SO 95/24 B ER –
Rehabilitation and participation of disabled people (SGB IX)
Guiding principles www.sozialgerichtsbarkeit.de
1. On the requirements for an important reason for terminating a target agreement within the meaning of Section 29 Paragraph 4 of the German Social Code, Book IX (SGB IX).
2. Due to the mandatory revocation of the benefit award as a consequence of the termination of the target agreement, as regulated in Section 29 Paragraph 4 Sentence 7 of the German Social Code, Book IX (SGB IX), an entitlement to a personal budget without a target agreement cannot arise for the subsequent period after effective termination, at least if the reasons supporting the termination still exist.
Court Note:
According to the Federal Social Court's jurisprudence under the previous legal framework, the prior conclusion of a target agreement with the minimum content is at most a "formal requirement" for the subsequent issuance of an administrative act concerning the personal budget (Federal Social Court, Judgment of January 28, 2021 – B 8 SO 9/19 R –). However, the Federal Social Court expressly left open the question of what consequences arise for the entitlement if such an agreement is not concluded due to a dispute over its content.
Due to the mandatory revocation of the benefit award as a consequence of the termination of the target agreement, as regulated by law in Section 29 Paragraph 4 Sentence 7 of the German Social Code, Book IX (SGB IX), an entitlement to a personal budget without a target agreement cannot arise after effective termination if – as in this case – the reasons supporting the termination still exist or have not been refuted.
5. Miscellaneous information on citizen's income, social assistance, asylum law, child supplement, housing benefit law and other legal codes
5.1 – New guidelines for reasonable housing costs in Dresden – Rent ceilings will increase in Dresden from January 2025 for recipients of citizen's income/social assistance
Effective January 1, 2025, the Dresden rent limits, up to which the Job Center and the Social Welfare Office will cover housing costs for recipients of citizen's income and social assistance, will be increased. From the new year onward, housing costs in Dresden will be considered reasonable up to the following amounts:
Number of people in the household
; appropriate gross rent
(basic rent plus cold operating costs)
For comparison:
previous guideline values
1-person household
€449.25 €
368.93;
2-person household
€556.02 €
464.93
More information: www.dresden.de
6. Decisions of the Federal Social Court on basic income support (SGB II)
6.1 – BSG, judgment of July 11, 2024 – B 4 AS 11/23 R
Basic income support for job seekers – Exclusion of trainees from educational assistance – Retroactive leave of absence from studies due to illness – Retroactive revocation of approval and recovery of benefits under the Federal Training Assistance Act (BAföG) – Subsequent application for unemployment benefit II – Retroactive effect of the application
Can an application for benefits under the German Social Code, Book II (SGB II), be retroactively effective pursuant to Section 28 of the German Social Code, Book X (SGB X), if the person concerned has been retroactively granted leave of absence from their studies and, as a result, the approval of benefits under the Federal Training Assistance Act (BAföG) has been revoked and their reimbursement demanded?
Federal Social Court (BSG): Application for unemployment benefit II (ALG II) has no retroactive effect in case of exclusion from benefits and lack of causal link
the wording of Section 28 of the German Social Code, Book X (SGB X),
the recipient of benefits must have refrained from submitting an application because they expected to receive a different social benefit. This presupposes, firstly, a causal link between not applying for one benefit and claiming the other. Furthermore, this link must be based on a conscious decision not to apply.
Causal link between not applying for one social benefit and claiming the other
This conscious decision, which must exist at the time of applying for the other social benefit, is lacking here, according to the judges of the Federal Social Court (BSG). The applicant did not refrain from applying for ALG II benefits because he had asserted a claim to another social benefit.
In this respect, the case differs in factual terms from the one on which the Senate had to rule in its judgment of June 6, 2023 (B 4 AS 86/21 R).
Full text now available: www.rechtsprechung-im-internet.de
Author of the case law ticker: Tacheles editor Detlef Brock.
Source: Tacheles case law ticker
