If your income is not sufficient to cover your housing costs, there are various state benefits available in Germany. Many people ask themselves: Should I apply for living allowance or citizens allowance? In this article, we explain the differences and when which benefit is applicable.
Living allowance is a state subsidy towards housing costs for people on low incomes who are not entitled to citizens allowance. It is granted as a rent subsidy for tenants or an encumbrance subsidy for owners. The amount of the living allowance depends on the size of the household, income and housing costs.
Citizens allowance (formerly Hartz IV) is a basic security benefit for people who are unable to finance their own living expenses. It not only covers housing costs, but also general living expenses. In addition to the standard rates, the costs for accommodation and heating are also covered if they are deemed reasonable.
Living allowance: Low-income earners, pensioners, students not entitled to BAföG, trainees and other low-income households.
Citizens allowance: unemployed people, low-income earners who cannot cover their own living costs and people with special needs.
Simultaneous receipt of both benefits is generally excluded. Anyone receiving citizens allowance is not entitled to living allowance as the accommodation costs are already covered by the citizens allowance.
With the LeistungsLotse benefits calculator, you can find out in just a few minutes whether and how much living allowance or citizens allowance you can receive. The calculator takes into account your household size, housing costs and income and provides an initial guide. Use this tool to better assess your financial situation and submit an application directly if necessary.
In Germany, various state benefits are available to low-income households to cover housing costs. The question of whether to apply for living allowance or citizens allowance (formerly Hartz IV) is particularly common. Both benefits have different requirements and effects.
Please note: The benefit you can receive depends on your demand rate. The rule of thumb is that if your household income is below the rate for citizens allowance, it usually makes more sense to top it up with citizens allowance. If your income is higher, only living allowance can be considered anyway.
Living allowance is a state subsidy towards housing costs and is aimed at low-income households who are not entitled to citizens allowance. It is a supplementary benefit that does not cover the entire minimum subsistence level, but is merely intended to cushion housing costs. Citizens allowance, on the other hand, is a more comprehensive social benefit that covers living expenses as well as housing costs.
The calculation of living allowance is based on income, the number of household members and rent or charges. Citizens allowance, on the other hand, is granted if there is a demand - i.e. if there is no income or if it is below the demand rate.
In principle, living allowance and citizens allowance are mutually exclusive. Anyone receiving citizens allowance is already entitled to have their housing costs covered by the job centre and therefore cannot receive housing benefit. In certain cases, however, it may make sense to apply for living allowance first and only then check whether citizens allowance is also needed.
There is an exception for household members with different benefit entitlements. If one person in the household receives citizens allowance while other family members are not entitled to it, it may be possible to apply for living allowance for these people. As living allowance is always granted for the entire household, people who already receive other benefits are excluded.
As the calculation of living allowance and citizens allowance differs, in some cases it can be unclear which benefit offers the better financial support. In theory, applicants can apply for both living allowance and citizens allowance. If it turns out after the calculation that living allowance is more favourable, the citizens allowance application can be withdrawn. This can be particularly relevant for households with fluctuating incomes or special burdens.
Note: It is important to realise the differences. For some people, both are possible. Citizens allowance is usually the more "lucrative" benefit, but also involves job centre appointments and measures. Living allowances can take a long time to be approved, but there are no such obligations.
In special cases, it may make sense to apply for citizens allowance instead of living allowance for a limited period of time. One example is a high back payment for heating costs: living allowance only partially covers heating costs, while the job centre can also cover exceptionally high back payments as part of the citizens allowance. In such cases, it may be advisable to apply for citizens allowance for a certain period in order to have these costs covered. After the costs have been covered, you can then apply for living allowance again if the requirements are still met.
The application deadlines for living allowance and citizens allowance differ. Living allowances can only be applied for in the future and for a maximum retroactive period of one month. This means that an application must be submitted no later than the month following the start of the need in order to secure the full entitlement.
Citizens allowance, on the other hand, can be granted from the month in which the application is submitted. There is no retroactive payment for periods in which no application was made. It is therefore important to submit an application in good time in order to avoid financial bottlenecks.
Whether living allowance or citizens allowance is the better choice depends on the individual's financial situation. While citizens allowance offers more comprehensive protection, living allowance can be an attractive support for households with their own income. In certain cases, it may be worth applying for citizens allowance temporarily, especially if high back payments are due. If you are unsure, you can submit both applications and then decide which option is more favourable based on the calculation. It is important to keep an eye on the application deadlines so as not to lose any entitlements.
With the LeistungsLotse benefits calculator, you can find out in just a few minutes whether and how much living allowance or citizens allowance you can receive. The calculator takes into account your household size, housing costs and income and provides an initial guide. Use this tool to better assess your financial situation and submit an application directly if necessary.
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