Cost-of-living assistance (Hilfe zum Lebensunterhalt)

How much money will I receive as cost-of-living assistance? 

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

The following calculation often applies to the amount of cost-of-living assistance: Needs minus income to be taken into account = benefit amount.

Needs can vary widely, depending on whether you live alone, with other people in a shared household, or in a residential facility. For the purpose of calculating cost-of-living assistance, the total needs allowance is broken down as follows:

• Basic needs allowance (“Regelbedarf”) – a monthly, flat-rate sum of money for everyday expenses such as food, clothing or the purchase of household appliances; the current basic rates can be found here
• Need for rent and heating
• Contributions to health insurance and long-term care insurance.

In addition, there may be so-called additional needs (“Mehrbedarf”) and one-off benefits.

What are additional needs?

In addition to the basic needs allowance, there is also the so-called additional needs allowance. The additional needs allowance can be applied for in special life situations and increases the total monthly needs allowance. This is the case, for example, if you are expecting a child, are a single parent, or if you have a physical limitation.

There are also one-off benefits. This includes, for example, to provide initial equipment for an apartment or for a child after birth.

Children and young people whose parents receive cost-of-living assistance can also receive additional benefits for education and participation. These include money for school needs (for example for writing materials, binders, etc.), for tutoring, school lunch, transport to school and reimbursement of costs for excursions and school trips.

Is it also possible to obtain a loan?

Yes, if you cannot pay for a particular need from your monthly basic rate. In this case, under certain conditions, you may be able to get a loan from the social security office. This is then paid back in small installments deducted from your monthly benefits.

If you only require assistance for a short time, cost-of-living assistance may also be provided as a loan. When your cost-of-living assistance ends, you must pay it back.

What are additional requirements?

In addition to the standard requirement, there is the so-called additional requirement. The additional requirement can be applied for in special life situations and increase the total monthly requirement. This is the case, for example, if you are expecting a child, are a single parent or if you have a physical disability.

What are one-off requirements?

The one-off benefits (Einmalige Bedarfe) are intended, for example, for the initial furnishing of an apartment or the equipment of a child after birth. These benefits must be applied for separately (online application for one-off needs).

What are the benefits for education and participation?

Kinder und Jugendliche, deren Eltern Hilfe zum Lebensunterhalt bekommen, können zusätzlich noch Leistungen für Bildung und Teilhabe erhalten. Dazu gehört Geld für den Schulbedarf (beispielsweise für Schreibmaterialien, Schnellhefter usw.), für Nachhilfe, Schulmittagessen, Fahrten zur Schule sowie Erstattung der Kosten für Ausflüge und Klassenfahrten. Den Antrag auf Kostenübernahme zu Leistungen für Bildung und Teilhabe müssen Sie separat stellen.

Children and young people whose parents receive income support can also receive benefits for education and participation. This includes money for school supplies (e.g. writing materials, exercise books, etc.), tutoring, school lunches, trips to school and reimbursement of costs for excursions and school trips. You must submit a separate application for the assumption of costs for benefits for education and participation.

An important term in the context of cost-of-living assistance is the community of responsibility and support. These are people who have a personal relationship with each other and live together. They help each other and support each other financially in order to meet their living costs.

Who is part of the community of responsibility and support?

If you apply for cost-of-living assistance, the income and assets of your spouse are also taken into account. This also applies to registered civil partnerships and committed partnerships if the partners live together. If a minor and 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 community of responsibility and support.

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

Children under the age of 15 cannot work. This means they cannot make a living themselves. If, for example, children do not live with their parents, or their parents are also unable to work, they may be entitled to cost-of-living assistance. This includes, for example, children who live with their grandparents or with a foster family. However, there are other social benefits which take priority here, namely child and youth welfare benefits under Book 8 of the Social Security Code (SGB VIII).

Will the costs of my rental apartment be covered?

Yes. In addition to the lump-sum monthly basic needs allowance, the social security office also pays rent, ancillary costs and heating costs. Electricity must be paid out of the money from the basic needs allowance.

Rent costs must be appropriate for the apartment size and the number of people living in it. Your apartment must not be too large or too expensive. If the social security office considers the costs of your rental apartment to be too high and therefore not reasonable, you do not have to move to a cheaper apartment immediately. You have six months to do so. Only then will payments be reduced. 

When is an apartment considered “reasonable”?

This overview shows guideline values for which apartment sizes are generally considered to be appropriate:

• 45-50 m2 for one person
• 60 m2 or two rooms for two people
• 75 m2 or three rooms for three people
• 85-90 m2 or four rooms for four people
• own house (self-occupied) up to 130 m2
• a condominium (self-occupied) 120 m2

The social security office will examine and decide whether an apartment is still considered reasonable. For example, how much the apartment actually costs must be taken into account. Rules for this may differ from region to region.

Will I also receive help to furnish my new apartment?

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

• if you move out of your parents’ home and start your own household,
• if you were homeless and have moved back into an apartment,
• if, after a long period of imprisonment (at least six months), you no longer have a household of your own and move back into an apartment.

If your relocation or moving in has been approved by the relevant social security office, you can apply for an allowance to furnish your apartment for the first time. You will then receive a financial subsidy or vouchers for essential household equipment. For example, for furniture, household appliances, pots and other items. There is no uniform Germany-wide regulation on how much aid you will receive for the initial equipment of your apartment, and it may therefore vary from region to region.

What about if I have rent debts?

If there is a risk that you will lose the apartment due to rental debts, the social security office may also cover rental debts under certain conditions (known as Other assistance for securing accommodation as per Section 36 of SGB XII). This usually takes the form of a loan.

Electricity debts can also be covered if the meter is at risk of being disconnected or has already been disconnected. Electricity debts are always covered as a loan. For repayment, a certain portion of your monthly benefit payment is withheld and not paid out (Section 37 of SGB XII).

Will my statutory health insurance contributions be covered?

Yes. If you are unable to pay your health insurance and long-term care insurance contributions from your own income, the social security office may be able to take the costs into account as a need. This includes:

• contributions to statutory health insurance and social long-term care insurance, as well as
• the “additional contribution”, which each health insurance company additionally determines for itself.

Please note: If the money you receive monthly from the social security office is higher than your health insurance contribution, the social security office must pay the contribution directly to the health insurance. If your health insurance contribution is higher than the assistance granted, you must pay the contribution to the health insurance company yourself.

What about if I have private health insurance?

If you have private health insurance, your contributions are also taken into account as a need, provided they are reasonable. Private health insurance contributions at the basic rate or a comparable rate are considered reasonable. Contributions to private long-term care insurance will also be covered if they are reasonable. This is the case if the scope of the benefit corresponds approximately to the benefits of the statutory long-term care insurance.

Even in the case of private health and long-term care insurance, the contributions identified as necessary (a need) are transferred directly from the social security office to the insurance company if your entitlement to benefits is sufficient for this purpose.

What about my existing retirement provision?

In order to prevent you from requiring assistance at retirement age, the social security office may also be able to cover your contributions to your pension scheme that have been paid on a voluntary basis up to that point. This is particularly important if you cannot access your assets as a recipient of cost-of-living assistance, as contractual provisions do not allow this until the start of the retirement age.

Contributions may be considered a need, for example for:

• statutory pension insurance
• agricultural pension funds
• professional pension institutions, provided they are comparable to statutory pension insurance
• capital-funded retirement provision in the form of a lifelong pension after the age of 60 (“Rürup pension”)
• retirement provision with tax advantages (“Riester pension”).

However, each social security office decides whether contributions to the pension scheme are to be covered in each individual case. There is therefore no guarantee that your contributions will be covered.

Contributions to an existing death benefit insurance fund can also be covered under certain circumstances, where reasonable. For this purpose, the amount of the death benefit must be able to cover the costs of a funeral, reasonable for the local area, and the insurance must have been concluded before the social welfare began. In addition, your monthly contributions must be reasonable.

You may be entitled to cost-of-living assistance if you do not have enough income and assets to pay for your essential needs. This means that you must use your existing money before you can receive help to cover your living costs. The social security office therefore examines the relevant income and financial situation. It also clarifies whether, for example, partners, parents or other members of the community of responsibility and support (family in your household) can support you (see also section “Cost-of-living assistance and family”), or whether you may be entitled to other benefits.

The amount of money you actually receive in the form of cost-of-living assistance depends on your income amount and the needs identified (see also section “Amount and composition of cost-of-living assistance”).

What earnings count as income?

Income includes all regular and irregular revenue, such as:

• Income from self-employment or employment, renting or leasing
• Maintenance payments or advances on maintenance
• Pensions and income from an additional retirement provision
• Parental allowance
• Child benefit (for children of full age)
• Benefits under the Maintenance Advance Act
• Sick pay
• One-off income such as gifts, severance payments, reimbursements of incidental expenses or gambling winnings.

If you have assets to which you have immediate access, you must use these first to pay for your living costs. Only then are you entitled to cost-of-living assistance. Assets include everything that is available before receiving the assistance. For example, cash, bank balances, shares, building loan contracts, life insurance and real estate. Any valuables that you receive during the time you are receiving benefits (for example, by inheritance) can also be counted as an asset. However, some assets are protected.

Do I have to exhaust all my assets before I am entitled to cost-of-living assistance?

No. There is such a thing protected assets, which do not have to be used and, in most cases, can be retained. This includes cash amounts of a maximum of 5,000 euro, furniture, household items and items that are not considered luxury goods (such as musical instruments). This also includes an owner-occupied property and an owner-occupied condominium, provided that these are reasonable (see also section “Cost-of-living assistance and housing”).

If you receive cost-of-living assistance, you also have certain duties, known as duties of cooperation. It is important that you fulfill these obligations and that you meet the applicable deadlines.

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

• provide all relevant and important information in relation to the service (e.g. income and assets)
• agree that the social security office may also obtain necessary information about you from other parties (for example relatives or banks)
• immediately report any changes in your personal circumstances if these are important for calculating the benefit
• at the request of the social security office, provide appropriate evidence (for example: certificates of proof) or agree to their submission.

If you apply for cost-of-living assistance, all information must be correct and complete. If there are any subsequent changes, you are obliged to inform your responsible social security office as quickly as possible. Typical reasons for the duty to report are, for example, a relocation, changes to your household, changes to your economic situation, and changes in your personal circumstances (for example: marriage, separation, pregnancy, birth).

You are also obliged to submit required documents. As a rule, the social security office will set you a deadline for submitting the documents. If you are unable to meet this deadline, please inform your social security office in good time and ask for an extension of the deadline. It is also best to explain why you cannot comply with the deadline. If no deadline has been set for you, please submit the requested documents as quickly as possible. If you have any questions, the relevant social security office will provide further assistance.

The duties of cooperation apply to all persons in a community of responsibility and support. For this reason, you should include these people when applying for cost-of-living assistance, in order to provide accurate and complete information.

What happens if I do not fulfill these obligations?

If you breach your duties of cooperation, the social security office may no longer pay your benefit, or may reclaim benefits received in error. You may lodge an appeal against the social security office’s decision within one month. The case will then be re-examined.

Incorrect information about existing income or assets, for example, can also lead to non-compliance procedures or criminal proceedings. The social security office regularly checks the income and assets of people receiving social benefits.