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Assets, sanctions and Co.: The new rules on citizen income

2023-01-11T09:55:54.345Z

Assets, sanctions and Co.: The new rules on citizen income Created: 01/11/2023 10:44 am At the turn of the year, Hartz IV became citizen income. Who gets how much and what else is there to know. An overview. Munich – Around five and a half million people in Germany received Hartz IV (ALG 2 or unemployment benefit II) last year. Since 2023 they have been receiving the new citizens' allowance ins



Assets, sanctions and Co.: The new rules on citizen income

Created: 01/11/2023 10:44 am

At the turn of the year, Hartz IV became citizen income.

Who gets how much and what else is there to know.

An overview.

Munich – Around five and a half million people in Germany received Hartz IV (ALG 2 or unemployment benefit II) last year.

Since 2023 they have been receiving the new citizens' allowance instead.

The changeover runs automatically – and without any problems, as Federal Labor Minister Hubertus Heil reported in an initial assessment.

"The payments are running smoothly," said the SPD politician.

Citizens' allowance: Introduction takes place in two steps

The introduction will take place in two steps so as not to overwhelm the job center.

In a first step, in addition to increasing the so-called standard requirements, the job centers were relieved of unnecessary bureaucracy.

"In addition, we have streamlined the applications and completely digitized them," said Heil.

Citizens' allowance can be easily applied for online right from the start.

Further implementation took place on July 1st.

Then the planned labor market policy improvements would be implemented.

The main focus is on qualification and additional income.

The standard benefits of the offices have been a good tenth higher since January.

For a single person there is 502 euros per month instead of the previous 449 euros - plus the full costs of accommodation, although the heating costs can be checked to see whether they are reasonable.

money for the employable

People who are able to work and their families are entitled to citizenship benefits.

It is paid to the unemployed whose unemployment benefits are too low or have expired, many single parents, some self-employed people whose business is struggling, and many low-income workers.

grace period

My apartment, my house, my savings - and then suddenly comes the descent.

A lot of people are afraid of that.

The new citizens' income brings limited protection against relegation for them.

Nobody should worry about what they have in the first year of receiving the citizen's allowance.

Because the regulations of the so-called waiting period apply here: During this time, the full rental burden is generally recognized by the office without being checked.

In the case of owners, there is no check during the waiting period as to whether a house or apartment they use themselves is “appropriate”.

Selling or renting out a house that is too large can only become an issue in the second year of receiving the citizen's allowance.

In addition, applicants do not have to touch freely available savings (such as savings and shares) up to a value of 40,000 euros.

This value applies to single people.

A further 15,000 euros are added for each family member.

Important: The waiting period rules also apply to everyone who has already received ALG 2.

For them, the conditions that have been eased since March 2020 due to Corona will be extended for the most part by another year.

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My space

From January 1, 2023, the new citizen's income will be paid out.

© Karl-Josef Hildenbrand/dpa

After the grace period

Only freely usable assets of 15,000 euros per person are considered protected, as well as all assets that serve to provide for old age - such as pension insurance contracts.

More generous rules will also apply from the second year.

For a household with up to four people, a house with 140 square meters and a condominium with up to 130 square meters is appropriate - it does not have to be sold or rented.

For larger households, add another 20 square meters per person.

The size of the property no longer matters.

Rules for Tenants

For single tenants, only an apartment with 45 or 50 square meters is considered appropriate from the second year of receiving citizen benefit.

15 square meters are added for each additional person.

Those who live in larger and "too expensive" apartments are asked to get a cheaper apartment.

After a "search period" of six months, the job center then only bears the costs of an appropriate apartment according to local regulations.

car allowed

Every employable member of a family who receives citizenship benefit is granted an appropriate motor vehicle.

There is no longer a limit of 7,500 euros, as was the case with Hartz IV.

520 euros additional income

As of July of this year, schoolchildren and trainees who receive citizen's income may earn an additional 520 euros per month without reducing their income.

Income from holiday jobs is not taken into account.

From July 2023, slightly more generous additional income rules will also apply to older recipients of citizen's income.

Priority training

In the case of Hartz IV, the job centers sometimes placed beneficiaries in jobs with no prospects.

The following now applies: In case of doubt, placement in further training has priority.

For more information send us an email to: ratgeber@biallo.de.

Author: Rolf Winkel 

Source: merkur

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