Overview of case law
on basic income support, social assistance, asylum seekers' benefits law, citizen's allowance, and employment promotion law
Last updated: July 5, 2026
Editor: Detlef Brock
Publisher: Tacheles Legal News Ticker
1. Decisions of the state social courts on basic income support under the German Social Code, Book II (SGB II)
1.1 – Berlin-Brandenburg State Social Court, Judgment of 22 April 2026 – L 34 AS 1095/22 –
The issue of
the payout from the child's father's term life insurance policy is the child's assets despite the family court's removal of the mother's asset custody rights – readily available funds – attribution of income exceeding the child's needs to the person entitled to child benefit.
Decision:
A decision by the family court, by which the mother (who alone represents the child) is deprived of the right to manage the assets "concerning the estate of the child's father", does not change the fact that the term life insurance sum paid into the child's account remains available as a readily available means to cover the child's needs.
Note by Detlef Brock:
The ruling – issued under the Hartz IV system – clarifies that one-off payments from insurance policies are not automatically exempt from being counted as income for recipients of benefits under the German Social Code, Book II (SGB II, basic income support). They must initially be considered as income and are only assessed as protected or unprotected assets in subsequent months.
Source
www.socialgerichtsabilities.de
2. Decisions of the social courts on basic income support / citizen's allowance
2.1 – Social Court Nordhausen, decision of 02.01.2026 – S 13 AS 2/26 ER –
Topic:
Is a self-proclaimed human rights defender authorized to represent clients?
Guiding principles
A self-proclaimed human rights defender is not authorized to represent clients in this capacity under Section 73 Paragraph 2 of the Social Court Act (SGG).
Source
www.socialgerichtsabilities.de
2.2 – Social Court Dresden, Judgment of 22 June 2026 – S 12 AS 756/24 FS – Appeal allowed
Topic:
Is insolvency pay considered earned income or other income?
Both the employment allowance and the basic allowance must be deducted from the back payment of insolvency pay.
Guiding principles
- In the case of a back payment of insolvency pay, in addition to the earned income allowance, the basic allowance pursuant to Section 11b Paragraph 2 Sentence 1 of the German Social Code, Book II (SGB II) in the version applicable from 01.08.2016 (Article 1 of the Act of 26.07.2016, Federal Law Gazette I p. 1824) must also be deducted for each month for which the insolvency pay is paid.
- The insolvency payment, which is paid as a one-off lump sum, must be adjusted like earned income.
- Demarcation from the case law of the Federal Social Court of 18 May 2022 on the subsequent payment of overtime pay (B 7/14 AS 9/21 R).
Source
www.socialgerichtsabilities.de
3. Decisions on employment promotion law (SGB III)
3.1 – Social Court Nordhausen, Judgment of 28 May 2026 – S 18 AL 1212/25 –
Topic:
Amount of unemployment benefit I – consideration of accumulated value credits
Guiding principles
The consideration of the remuneration that the unemployed person would have earned without a value credit agreement pursuant to Section 7b of the German Social Code, Book IV (SGB IV), as determined by Section 151 Paragraph 3 No. 2 Sentence 1 of the German Social Code, Book III (SGB III), is not modified by Section 151 Paragraph 2 No. 2 of the German Social Code, Book III (SGB III), which merely regulates the treatment of the payment of such a credit.
Source
www.socialgerichtsabilities.de
4. Decisions on social assistance (SGB XII)
4.1 – Saxon State Social Court, decision of 21 May 2026 – L 2 SO 26/26 B ER –
Topic:
Employment services as participation in working life for self-determined living for people with disabilities – prerequisites for a budget for work and job assistance according to § 61 SGB IX
Guiding principles
To qualify for a work budget as a form of integration assistance (participation in working life) for employment with an employer, the eligible person must generally be capable of performing at least a minimum level of economically viable work in the work area of a recognized workshop for people with disabilities. The specific requirements and conditions of the concluded employment contract are irrelevant in this regard.
Source
www.socialgerichtsabilities.de
Comment by Detlef Brock:
Two courts have now ruled within a short period of time that the special services in the initial assessment procedure of a workshop for disabled people (WfbM) require that the person with a disability will likely be able to provide at least a minimum level of economically viable work performance after participating in these services (prognosis decision).
No excessive demands may be placed on this minimum standard. Otherwise, the initial assessment procedure could not fulfill its legally mandated probationary function. Rather, the required minimum level of economically viable work performance must only be expected after participation in the initial assessment procedure and the vocational training phase (see Bavarian State Social Court, decision of March 27, 2025 – L 9 AL 119/24 B ER –).
4.2 – Saxon State Social Court, decision of 09.12.2025 – L 2 SO 71/25 B ER –
Topic:
Integration assistance in the form of cost coverage for school support – an 8-year-old disabled primary school student is entitled to school support.
Decision:
By way of preliminary legal protection, a primary school student with a disability living in a rural region is to be granted integration assistance in the form of support for attending a primary school and a privately run after-school care center.
Source
www.schulrecht-dresden.de
5. Decisions concerning the Asylum Seekers' Benefits Act (AsylbLG)
5.1 – Social Court Dresden, decision of 05.12.2025 – S 20 AY 86/25 ER –
Section
1, paragraph 4, sentence 1 of the Asylum Seekers' Benefits Act (AsylbLG) is contrary to European law.
Guiding principles
- Section 84 paragraph 1 sentence 1 of the Social Courts Act (SGG) is also applicable in proceedings under the Asylum Seekers' Benefits Act (AsylbLG), since the social courts' recourse is open for these proceedings in accordance with Section 51 paragraph 1 no. 6a of the Social Courts Act (SGG).
- Section 1 paragraph 4 sentence 1 of the Asylum Seekers' Benefits Act (AsylbLG) is contrary to European law and, taking into account the requirements of the fundamental right to a dignified minimum standard of living, is not applicable for the time being.
Source
www.socialgerichtsabilities.de
Note on citation style
Unpublished judgments or comments may only be quoted with attribution to the source:
- Source: Tacheles Case Law Ticker Week XX/2025 – Author: Detlef Brock
- Newsletter: Thomé Newsletter 12/2025 from April 6th, 2025 - Author: Harald Thomé
- License: Creative Commons CC BY-SA 3.0
Quotations without source information are not permitted.
