Definition and Legal Significance of Neediness
The term neediness refers in German law to the situation in which a person cannot secure their livelihood or certain essential needs through their own efforts, means, or resources and is therefore reliant on state or social support. Determining neediness is a prerequisite for receiving a variety of social benefits, particularly under the Social Code (SGB).
Neediness is a central concept in various areas of law, primarily social law, and serves to distinguish between those eligible for support and those who are not.
Neediness under the Social Code Book II (SGB II) – Basic Security for Jobseekers
Definition and Principles
According to § 9 paragraph 1 SGB II, a person is considered needy if they cannot secure their own livelihood and that of their assistance community from their own efforts and resources, and cannot receive the necessary help from others, especially from relatives or other social service providers. The assessment of neediness is based on the following principles:
- The current economic situation (income, assets) is decisive.
- Independent means of securing livelihood are given priority.
- Assistance from third parties, especially maintenance payments, is taken into account.
Assistance Community and Household Context
In SGB II, the so-called assistance community is used to determine neediness. The assistance community regularly includes spouses, registered partners, and unmarried children up to the age of 25, as long as they live in the household and have no independent claim to basic security.
The income and assets of all members of the assistance community are considered together, meaning neediness can be impacted or eliminated by the resources of other household members.
Income and Asset Consideration
Within the scope of benefit approval, all income and assets to be considered (see §§ 11 ff. SGB II) are taken into account. There are allowances and exemptions, for example for small amounts of money, retirement savings, or certain everyday items.
Neediness within the meaning of SGB II only exists if, after deducting all allowances and any relevant maintenance payments, there remains a gap between the need and the resources available.
Neediness under the Social Code Book XII (SGB XII) – Social Assistance
Significance and Scope of Application
In SGB XII, neediness forms the basis for social assistance, such as subsistence support or basic security in old age. Here too, it is checked whether a needy person is able to support themselves from their own efforts and means (§ 19 SGB XII).
Priority of Own Capabilities and Maintenance Payments
Own resources and entitlement to support from relatives, spouses, or other third parties must be prioritised. The entitlement assessment is similar to that under SGB II but is often focused on particularly vulnerable groups, such as elderly persons or those with reduced earning capacity.
Approval Processes and Proof Obligations
To determine neediness, the applicant is required to provide information about their income and assets and to present appropriate evidence. Any changes in their financial situation must also be reported immediately.
Neediness under Other Legal Provisions
Basic Security Benefits under the Asylum Seekers Benefits Act
Neediness also applies under the Asylum Seekers Benefits Act (AsylbLG). Asylum seekers, persons with suspended deportation (Geduldete), or other eligible foreign nationals receive benefits if they cannot meet their needs from their own means or through support from third parties (§ 7 AsylbLG).
Child and Youth Welfare (SGB VIII)
In the context of child and youth welfare, neediness is relevant for the granting of educational support (§§ 27 ff. SGB VIII) or financial assistance (§ 39 SGB VIII), insofar as the need cannot be covered by own means or maintenance.
Criteria and Determination of Neediness
Income Calculation
To determine the assessable income, all household income such as wages, social benefits (with exceptions), maintenance, or investment income is considered. Allowances, advertising expense deductions, and certain earmarked income are deducted.
Asset Investigation
Not every asset automatically leads to the exclusion of neediness. Assets worthy of protection, such as an appropriate home property, certain reserves, or necessary household items, are exempt from consideration.
Special Features for Self-Help or Third-Party Assistance
Initiative to cover needs independently should always be considered first. Benefits from other social service providers, such as housing allowance or child benefit, as well as priority maintenance claims, reduce the level of neediness.
Exclusion and Cessation of Neediness
Neediness ceases once the person or their assistance community is able to secure their own livelihood again. This is typically the case when employment is taken up or when other priority benefits are received.
Changes in assets, inheritances, or support from third parties can also lead to the end of neediness if they cover the established needs.
Legal Protection and Review
In case of disputes or rejection of neediness, it is possible to have the decision reviewed. There are options for objection and litigation. Ongoing monitoring and adjustment of benefit receipt are part of the approval process.
References and Sources for Further Provisions
- SGB II – Basic Security for Jobseekers
- SGB XII – Social Assistance
- SGB VIII – Child and Youth Welfare
- Asylum Seekers Benefits Act
- Commentaries and Specialist Literature on Social Benefit Claims
Summary: Neediness is a multifaceted and central concept in German law, of fundamental importance for a range of social benefit types. Its determination primarily depends on the individual circumstances of income, assets, assistance community, and priority claims. In all areas of law, its purpose is to precisely define the eligibility requirements for state or social support and to ensure the targeted provision of benefits.
Frequently Asked Questions
Who determines neediness in the legal sense?
The determination of neediness is usually carried out by the competent authorities, for example the Jobcenter in the context of basic security for jobseekers under the Social Code II (SGB II) or the social welfare office in the context of social assistance under SGB XII. The decision is made on the basis of a written application and an examination of the actual living circumstances. The applicant must submit all documents and evidence regarding income, assets, maintenance payments, and any other financial resources. The authority then checks whether maintenance can be secured from own resources or not. Only then is neediness considered legally established. Legal remedies (objection, lawsuit) are available against negative decisions.
What role do personal assets play in assessing neediness?
Personal assets are a central criterion in determining neediness. Only if the applicant cannot cover the necessary living costs with their deployable assets does support come into consideration. However, there are so-called asset allowances that are not counted, for example for reasonable household goods, a car up to a certain value, or certain retirement savings. Any assets beyond these exemptions must be used to cover living expenses before state benefits are claimed. The exact amount of allowances and the definition of protected assets are set out in the relevant Social Codes and may change regularly.
How is income taken into account in the context of neediness?
Income is generally to be used as a matter of priority to cover one’s own living expenses before public funds may be claimed. The ‘assessable income’ is decisive, which remains after deducting certain allowances, work-related expenses, and amounts provided by law. Income includes salaries, wages, pensions, maintenance payments as well as one-off receipts, such as gifts or lottery winnings. The responsible authority regularly checks whether and to what extent income is available and deducts it from the potential assistance. The exact calculation is detailed in the Social Codes.
What legal obligations do those in need have towards the authority?
Persons in need are required by social law to fully cooperate with the authority in the so-called participation procedure. They must disclose all relevant personal and economic circumstances, provide evidence, and immediately notify any changes that could affect their need status (e.g., taking up employment, gifts, inheritances, marriage, or relocation). If the applicant fails to fulfill these obligations to cooperate, the authority may refuse, reclaim, or discontinue benefits. Deliberately concealing income or assets may also result in criminal consequences such as fraud.
What legal options are available in case of rejection?
If an application for benefits is rejected by the authority due to lack of neediness, the applicant has the right to file an objection against the decision. The deadline is generally one month. If the objection is unsuccessful, the applicant may sue before the competent social court. During the ongoing proceedings, the court can be requested to grant preliminary legal protection if otherwise an unreasonable emergency would arise. The chances of success for legal remedies depend on whether the rejection was justified or whether legal or factual errors were made in the administrative process.
Can relatives be obliged to support persons in need?
Yes, in legal terms there may be a maintenance obligation for relatives under certain conditions, especially for parents towards their minor and adult children and vice versa. Before social benefits can be claimed, it is checked whether relatives obliged to provide maintenance are able to contribute support. However, there are allowances and restrictions for this: For example, according to § 94 SGB XII, children are only required to contribute to parents’ social assistance if their gross annual income exceeds 100,000 euros (‘parental maintenance’). The limit of what relatives can reasonably be expected to pay is also carefully assessed.
Does neediness also apply in temporary emergency situations?
Neediness can also exist if the emergency is not permanent, but only temporary. Social law distinguishes between permanent and temporary neediness, for example in cases of short-term unemployment, illness, or sudden loss of income. Benefits can be granted for a limited period in such cases, such as unemployment benefit II as a bridging payment until regular employment is resumed. The duration and extent of benefits depend on the applicable legal basis and the individual’s specific need during the period of hardship.
What claims can persons in need assert in addition to basic security?
In addition to basic security in old age or in cases of unemployment, social law provides various other aids for those in need. These include, among others, educational and participation benefits for children, care assistance, medical aid, one-off grants for special needs situations, or housing and heating benefits. The respective entitlements and requirements are described in detail in SGB II, SGB XII, and additional special statutory regulations. Particular life circumstances such as pregnancy, single parenthood, or disability may also give rise to additional claims to aid. An application and corresponding evidence are required in each case.
