Citizen's allowance despite half a million - How a court ruling changes the rules

The surprise in the legal dispute: 450,000 euros and still citizen's allowance?

Imagine you have a tidy fortune of almost half a million euros - and yet you still receive citizen's income. Sounds impossible? A recent court ruling shows that it is possible. A man who had a total of 450,000 euros in three different savings accounts initially received no benefits from the Jobcenter. However, the Berlin-Brandenburg Regional Social Court ruled that the money did not count as part of his "available" assets - and he received the citizen's allowance anyway.

Why the job center initially refused the citizen's allowance

The Jobcenter considered the money to be inadmissible assets and rejected the application for citizen's allowance. After all, the value of 450,000 euros is well above the protected assets permitted by law. However, the man complained because he had no direct access to the money - neither to his grandfather's account nor to his father's account. Both had invested the money as a reserve, but the applicant could not freely dispose of the sum.

What does this mean for other recipients of Citizen's Income?

The court's ruling clarifies that it is not the amount of assets that is decisive, but whether the applicant can actually dispose of the money. This means that even large savings can count as protected assets if the applicant does not have access to them. Assets are therefore only taken into account if they are actually available - and this is not always the case.

What are protected assets and how do they work?

Protected assets include assets that are not offset against social benefits. Anyone applying for Citizen's Income can save up to a certain amount without this affecting their entitlement. Since January 2023, the following applies: In the first year of receiving benefits, an amount of 40,000 euros in protected assets is retained for single people. An additional 15,000 euros is added for each additional person in the household. If the assets exceed this limit, they will be taken into account.

How to protect yourself properly

It is becoming increasingly important for recipients of Citizen's Income to keep track of their financial resources. Anyone who has savings accounts or investments should check carefully who actually has control over them. Written proof from the provider of the money or a declaration that the applicant cannot dispose of the money could be decisive in the event of a dispute.

How much wealth is too much for social welfare?

This ruling is another example of how the law can be brought into line with people's real living conditions. It shows that social benefits are not just about bare figures, but also about how citizens can actually use their assets. But how much "protected assets" can you have before you are considered "wealthy"? When we decide on people's neediness, we should ask ourselves: What does it really take for someone to be able to live in dignity? And shouldn't we also reconsider how we handle money and savings?