Cost-of-living assistance

How much money do you receive through cost-of-living assistance?

When you apply for cost-of-living assistance, the social services office first determines how much money you need. This is also called “determining your needs.” Next, your income is subtracted from this amount.

The amount of the cost-of-living assistance is often calculated as follows:
Needs minus countable income = amount of the benefit.

Needs can vary greatly depending on whether you live alone, with others in a shared household, or in a residential facility. 

The total needs used to calculate cost-of-living assistance are composed as follows:

• Standard needs allowance –a monthly, flat-rate amount for everyday expenses such as food, clothing, or the purchase of household appliances.
  • For single individuals and single parents eligible for benefits: 563 euros (Standard Needs Level 1)
  • For two partners in the benefit community who are at least 18 years old, each: 506 euros (Standard Needs Level 2)
  • For other able-bodied members of a benefit community, provided they are at least 18 years old, or for adult beneficiaries under 25 who move without the job center’s approval: 451 euros (Standard Needs Level 3)
  • For youths aged 15 through 17: 471 euros (Standard Needs Level 4)
  • For children from the beginning of their 7th year until they turn 14: 390 euros (Standard Needs Level 5)
  • For children up to the age of 6: 357 euros (basic needs level 6)

The allowance for personal school supplies in the calendar year 2026 is 65 euros for the second semester of the 2025–2026 school year and 130 euros for the first semester of the 2026–2027 school year.

• Rent and Heating Expenses
• Health and long-term care insurance premiums

In addition, there may be so-called “additional needs” and one-time payments (One-Time Needs), as well as benefits for education and participation.

Is it also possible to get a loan?

Yes, if you cannot cover a specific expense with your monthly standard benefit. Under certain conditions, you may then be eligible to receive a loan from the social services office. You will repay this loan in small installments, which will be deducted from your monthly benefits.

Even if you only need assistance for a short time, Cost-of-living assistance can be provided as a loan. When your Cost-of-living assistance ends, you must repay the loan.

What are additional needs?

In addition to the standard allowance, there is what is known as an additional allowance. You can apply for an additional allowance in certain life situations, which can increase your total monthly allowance. This is the case, for example, if you are expecting a child, are a single parent, or have a physical disability.

What are One-Time Needs?

One-Time Needs are intended, for example, to help furnish a new home or provide for a child after birth. These benefits must be applied for separately (online application for One-Time Needs).

What are the benefits for education and participation?

Children and adolescents whose parents receive Cost-of-living assistance may also be eligible for benefits for education and participation. These include funds for school supplies (such as writing materials, binders, etc.), tutoring, school lunches, transportation to school, and reimbursement of costs for field trips and school trips. You must submit a separate application for coverage of costs related to education and participation benefits.

An important term in connection with cost-of-living assistance is the “household.” This refers to people who have a personal relationship with one another and live together. They help and support one another financially to cover their living expenses together.

Who is considered part of a “community of support”?

When you apply for cost-of-living assistance, the income and assets of your spouse are also taken into account. This also applies to registered partnerships and cohabiting couples in a marriage-like relationship if the partners live together. If a minor, unmarried child applies for Cost-of-living assistance, the parents’ income and assets are also taken into account. In this case, they are part of the joint liability group.

Can children under the age of 15 receive cost-of-living assistance?

Children under the age of 15 are not capable of earning a living. This means they cannot earn their own living. If, for example, children do not live with their parents or their parents are also unable to work, they may be eligible for cost-of-living assistance. This includes, for example, children who live with their grandparents or in a foster family. However, there are other social benefits that take precedence here, namely child and youth welfare benefits under Book VIII of the Social Code (SGB VIII).

If there are children and adolescents whose parents receive Cost-of-living assistance, they may also be eligible for additional benefits for education and participation. 

This includes funds for school supplies (such as writing materials, binders, etc.), tutoring, school lunches, transportation to school, and reimbursement of costs for field trips and school trips. You must submit a separate application for coverage of costs related to education and participation benefits.

Are the costs for your rental apartment covered?

Yes. In addition to the flat-rate monthly basic allowance, the social services office also pays the rent, utilities, and heating costs. Electricity must be paid for out of the basic allowance.

The rent must be appropriate for the size of the apartment and the number of people living there. Your apartment must be reasonable; it cannot be too large or too expensive. If the social services office considers the cost of your rental apartment to be too high and therefore not reasonable, you do not have to move to a more affordable apartment immediately. You have 6 months. Only after that will your payments be reduced.

When is a home considered “reasonable”?

This overview shows guidelines for apartment sizes that are generally considered reasonable:

• 45–50 m² for one person
• 60 m² or 2 rooms for 2 people
• 75 m² or 3 rooms for 3 people
• 85–90 m² or 4 rooms for 4 people
• a single-family home (owner-occupied) up to 130 m²
• a condominium (owner-occupied) 120 m² 

The social services office reviews and determines whether an apartment is still considered reasonable. Factors such as the actual cost of the apartment are taken into account. The rules for this may vary from region to region.

Is financial assistance also available for furnishing your apartment?

Yes, this is possible in certain cases, such as:

• if you’re moving out of your parents’ home to set up your own household
• if you were homeless and are moving back into an apartment
• if, after a long period of incarceration (at least 6 months), you no longer have your own household and are moving back into an apartment

If the move has been approved by the responsible social services office, you can apply for what is known as the “initial furnishing allowance” for your apartment. You will then receive a financial grant or vouchers for essential household items, such as furniture, appliances, pots, and other necessities. There is no uniform Germany-wide regulation regarding the amount of the initial home furnishings allowance; it may therefore vary from region to region.

What if you have rent arrears?

If there is a risk that you might lose your apartment due to rent arrears, the social services office may, under certain conditions, also cover your rent arrears (so-called “Other Assistance to Secure Housing” under Section 36 of SGB XII). The debt is typically covered in the form of a loan.

In addition, electricity debts can also be covered if your electricity service is at risk of being shut off or has already been shut off. The electricity arrears are always covered in the form of a loan. To repay the loan, a certain portion of your monthly benefit entitlement is withheld and not paid out (Section 37 of SGB XII).

Special Case: You Live in a “Special Form of Housing”

Special housing arrangements are intended for adults with disabilities who, due to their disability, cannot live independently in an apartment with outpatient support. 

When several people with disabilities live in a residential home or group home within a facility with round-the-clock care, this is referred to as a “special living arrangement.” These individuals have their own rooms but live in group homes with a shared kitchen and common areas.

These individuals are eligible for cost-of-living assistance.

Are statutory health insurance premiums covered?

Yes. If you are unable to pay your health insurance and long-term care insurance premiums out of your own income, the social services office may, under certain circumstances, consider these costs as a financial need. This includes:

• premiums for statutory health insurance and social long-term care insurance, as well as
• the so-called “supplementary premium,” which each health insurance provider sets independently

Please note: If the monthly payment from Social Services is higher than the health insurance premium, Social Services must pay the premium directly to the health insurance provider. If the health insurance premium is higher than the approved assistance, you must transfer the premium to the health insurance provider yourself.

What if you have private health insurance?

If you have private health insurance, the premiums for that are also considered part of your needs, provided they are reasonable. Premiums for private health insurance under the basic plan or a comparable plan are considered reasonable. Premiums for private long-term care insurance are also covered if they are reasonable. This is the case if the scope of coverage roughly corresponds to the benefits provided by statutory long-term care insurance.

Even for private health and long-term care insurance, premiums recognized as a necessity are transferred directly from the social services office to the insurance company if the entitlement to benefits is sufficient.

What will happen to your existing retirement savings?

To help ensure you don’t need assistance when you reach retirement age, the social services office may, under certain circumstances, cover the retirement plan contributions you’ve made voluntarily so far. This is particularly important if, as a recipient of Cost-of-living assistance, you cannot access your assets because contractual provisions do not allow this until you reach retirement age.

For example, these contributions may be considered part of your needs for:

• the statutory pension insurance
• agricultural pension funds
• professional pension schemes, provided they are comparable to the statutory pension insurance
• funded retirement plans in the form of a lifetime annuity beginning after age 60 (so-called “Rürup pension”)
• tax-advantaged retirement savings (so-called “Riester pension”)

However, each social welfare office decides on a case-by-case basis whether to cover retirement savings contributions. There is therefore no guarantee that contributions will be covered.

Contributions to an existing funeral insurance policy may also be covered under certain circumstances, provided the policy is reasonable. For this, the amount of the funeral benefit must be sufficient to cover the locally reasonable costs of a funeral, and the insurance must have been taken out before the start of social assistance. Additionally, the monthly premiums must also be reasonable.

You may be eligible for cost-of-living assistance if your income and assets are insufficient to cover your living expenses. This means that you must use your available funds before you can receive cost-of-living assistance. Therefore, the social services office will review your income and asset situation. They will also determine whether, for example, a partner, parents , or other members of your household can support you (see also the section “Cost-of-living assistance and Family”) or whether you might be eligible for other benefits.

How much money you actually receive in the form of cost-of-living assistance depends on the amount of your income and your assessed needs (see also the section “Amount and Composition of Cost-of-Living Assistance”).

What types of income are counted toward your total income?

Income includes all regular and irregular sources of income, such as:

• Income from self-employment or employment, renting, or leasing
• Alimony payments or advance alimony payments
• Pensions and income from supplemental retirement plans
• Parental allowance
• Child benefit (for children of legal age)
• Benefits under the Advance Maintenance Payments Act
• Sick pay
• One-time income such as gifts, severance pay, reimbursement of incidental expenses, or gambling winnings

If you have assets to which you have immediate access, these must first be used to cover your living expenses. Only then are you eligible for cost-of-living assistance. Assets include everything you already own before receiving the assistance. For example, cash, bank balances, stocks, home savings contracts, life insurance policies, or real estate. Valuables that you receive while receiving benefits (for example, through an inheritance) may also count as assets. However, a portion of your assets is protected.

Do you have to use up all your assets before you are eligible for Cost-of-living assistance?

No. There is what is known as “exempt assets,” which do not have to be used and, in most cases, may be retained. These include cash amounts of up to 5,000 euros, furniture, household items, and items that are not considered luxury goods (such as musical instruments). A single-family home you live in and a condominium you live in are also included, provided they are of reasonable size (see also the section “Cost-of-living assistance and Housing Assistance”).

If you receive Cost-of-living assistance, you also have certain obligations, known as “obligations to cooperate.” It is important that you fulfill these obligations and meet the applicable deadlines.

For example, recipients of cost-of-living assistance must

• provide all information relevant to the benefit (such as income and assets)
• agree to allow the social services office to obtain necessary information about you from other parties (such as family members or banks)
• immediately report any changes in your personal circumstances if they are relevant to the calculation of the benefit
• upon request by the social services office, submit the relevant supporting documents (such as supporting evidence) or consent to their submission

When you apply for cost-of-living assistance, all information must be accurate and complete. If changes occur afterward, you are required to notify your local social services office as soon as possible (duty to report). Typical reasons for the duty to notify include, for example, a move, changes in the members of your household, changes in your financial situation, and personal changes (such as marriage, separation, pregnancy, or the birth of a child).

Submitting the required documents is also part of your obligation to cooperate. The social services office will generally set a deadline by which the documents must be submitted. If you cannot meet this deadline, inform the social services office in a timely manner and request an extension. It is best to also explain why you cannot meet the deadline. If no deadline has been set, please submit the required documents as soon as possible. If you have any questions, the responsible social services office will be happy to assist you.

The obligations to cooperate apply to all members of a household. Therefore, you should include these individuals when applying for Cost-of-living assistance so that you can provide accurate and complete information.

What happens if you fail to fulfill these obligations?

If you violate these obligations to cooperate, the social services office may stop paying benefits or demand repayment of benefits received in error. You can file an appeal against the social services office’s decision within one month. The case will then be reviewed again.

If you provide false information—for example, regarding your income or assets—this may also lead to administrative or criminal proceedings. The social services office regularly reviews the income and assets of individuals receiving social benefits.