- Court: Energy money does not reduce basic insurance
The one-time payment of 75 Euros granted by the city of Kassel due to increased energy costs does not reduce basic security benefits. The Hesse Higher Social Court ruled this in a statement.
In calculating benefits for unemployment assistance, contributions made without a legal or moral obligation are not considered income, the Darmstadt judges ruled.
This applies especially when these contributions do not significantly improve the recipient's situation, making basic security benefits unjustified.
City wanted to relieve residents with one-time payment
The city of Kassel decided in 2022 to pay its residents, upon request, a one-time resident energy allowance (EEG) of 75 Euros per person. This was to mitigate the burden of rising energy costs.
A family with four minor children received this allowance. The job center then reduced their basic security benefits. The agency argued that the EEG served the same purpose as SGB II benefits and should therefore be considered income.
The affected family, however, argued that it was a purpose-bound payment. The city magistrate also considered it grossly unfair or a particular hardship to account for the EEG, so the city, as the responsible carrier of social aid benefits, did not account for the allowance as income.
Allowance not considered income due to low amount
The Higher Social Court ruled that the EEG should not be considered income. It was a contribution made by the city of Kassel to all citizens, without any legal or moral obligation.
Considering the energy allowance as income was not grossly unfair, as the job center covered higher heating costs and the increased citizen's allowance since January 2023 covered rising electricity costs. However, the family's situation was not significantly improved by the EEG, making basic security benefits still justified.
The standard is that the contribution does not exceed ten percent of the respective regular requirement. If a one-time payment is to provide relief over several months, the amount should be divided accordingly. In this case, even if the EEG is only distributed over the months of October to December 2022, the limit of ten percent is not exceeded. The Higher Social Court allowed an appeal.
The following ruling by the Higher Social Court clarified that the one-time energy allowance of 75 Euros granted by the city of Kassel to mitigate energy cost burdens should not be considered income for calculating basic security benefits. Despite the energy allowance not significantly improving the family's situation, basic security benefits remained justified due to the standard that the contribution should not exceed ten percent of the respective regular requirement.
