SCANDIC ESTATE informs about the possible relief measures of the German federal government

Citizen’s Income – Coverage of Heating Costs

High heating prices can pose financial challenges for many tenants this year as well. Those who have difficulty paying additional heating cost payments can apply for support. This also applies to individuals who, due to their income, are otherwise not entitled to social benefits.

What’s behind it?

In addition to the base rent, the costs covered by the job center include heating costs. The rule of thumb is reasonableness. When determining what is reasonable, job centers of the employment agency refer to the nationwide heating index. They check whether the applicant’s consumption corresponds to the average consumption in comparable apartments.

Who gets it and how?

Employed or employable individuals should contact their local job center. Pensioners should contact the social welfare office.

It is important that the application is submitted in the month the additional payment bill arrives. So, it’s crucial to act quickly!

Housing Benefit Plus

In January 2025, the Housing Benefit Plus was increased by an average of about 15 percent. This means approximately 30 euros more per household. The Housing Benefit Plus now averages around 400 euros per month.

Good to know: The amount of eligible rent and income limits have increased. As a result, starting in 2025, households that were previously just above the assessment thresholds are also eligible for the subsidy.

What’s behind it?

At the beginning of 2023, the Housing Benefit Plus Act came into force. Since then, two million low-income households have been entitled to receive a subsidy for their housing costs from the state. This has tripled the number of eligible recipients.

Who gets it and how?

Housing benefits are available to people who work or receive a pension but do not have enough income to cover their living expenses on their own. It cannot be combined with other social benefits, such as citizen’s income. Applications are available at the local housing benefit office or online. The respective housing benefit office is responsible for advice and calculates the specific amount of the housing benefit.

Child Supplement and Child Benefit

Good news for families: In January 2025, the payment amounts for child benefit, child supplement, and immediate child supplement were each increased by 5 euros per month:

• Child benefit is now 255 euros monthly per child (2024: 250 euros).
• The maximum amount for the child supplement (KiZ) has increased from 292 euros to 297 euros per child.
• The immediate child supplement has been raised from 20 to 25 euros per month.

What’s behind it?

• Child Supplement: The child supplement is additional financial support for parents or single parents who already receive child benefit and whose income is insufficient or barely sufficient to cover the family’s entire needs. To receive the child supplement, a written application must be submitted to the responsible family benefits office.
• Immediate Child Supplement: This supplement is available to needy families with children, for example, those relying on basic income support, eligible for the child supplement, or receiving benefits under the Asylum Seekers’ Benefits Act. The child supplement can be applied for in writing or online at the responsible family benefits office. Once approved, it is paid out together with the child benefit.

Who gets it and how?

• Those already receiving the benefits do not need to take any action. The amounts are automatically adjusted and paid out at the new rate immediately.
• Those who want to apply for the child supplement or immediate child supplement for the first time can do so conveniently using the online services of the family benefits office (https://www.arbeitsagentur.de/familie-und-kinder/eservices-fuer-familien).

Improved Home Office Allowance

In 2025, it is still possible to deduct home office expenses. The legislature has introduced the home office allowance: It makes it easier for employees to deduct costs for working from home as business expenses.

Who gets it and how?

All employees who regularly work from home can claim the home office allowance as business expenses in their tax return:

• For each day you work from home, you can deduct 6 euros from your taxes, regardless of whether you have a dedicated home office or work at the kitchen table.
• The deduction is possible for a maximum of 210 home office days. Thus, you can deduct up to 1,260 euros per year via the home office allowance.
• If additional office equipment is needed to set up the home workplace and the employer does not cover these costs, these expenses can also be deducted as business expenses.

Deduction of Pension Contributions

In 2025, pension contributions can still be fully deducted from taxes up to a certain maximum amount.

What’s behind it?

Since 2023, contributions to pension schemes and voluntary contributions to statutory pensions can be deducted as special expenses up to the maximum amount at 100 percent. The maximum amount in 2025 is 29,344 euros for single individuals and 58,688 euros for married couples.

Who gets it and how?

All those who pay pension contributions and file an income tax return.

Germany Ticket

In January 2025, the price of the Germany Ticket was increased from 49 euros to 58 euros per month. This was decided by the transport ministers of the federal government and the states.

Who gets it and how?

• All citizens can purchase it from their local public transport provider.
• Usage varies depending on the federal state.