Income assessment under SGB II of one-time municipal energy subsidies for mitigating winter 2022/2023 cost increases

The Federal Social Court (BSG) reversed the lower court’s decision, ruling in favor of the claimant by determining that the one-time municipal "Resident Energy Money" (EEG) is not subject to income assessment under the Second Book of the Social Code (SGB II). The dispute concerned whether a flat-rate subsidy of €250 paid by a city to its residents during the 2022/2023 winter to offset rising energy costs constituted taxable income that should reduce the claimant’s statutory basic security benefits. The court held that such non-recurring, means-tested municipal relief payments aimed at mitigating specific financial hardships do not fall within the definition of income under § 11 SGB II, as they are not regular earnings or capital, and thus the claimant’s entitlement to benefits remained intact without reduction.