Housing benefit or citizen's allowance – which is right for you?
Both benefits support people on low incomes – but they work in completely different ways. In short: housing benefit (Wohngeld) tops up your own income towards housing costs. Citizen's allowance (Bürgergeld) covers your entire living costs when your income is not enough to do so.
Housing benefit: a subsidy towards rent
Housing benefit requires your own income, with which you generally cover your living costs yourself. It fills the gap in your housing costs – you stay independent of the Jobcenter and the social welfare office (Sozialamt).
Citizen's allowance: basic support for living costs
You receive citizen's allowance when your income and assets are not enough to cover your living costs. It includes the standard rate and the reasonable housing costs – there is no separate housing benefit entitlement alongside it.
Housing benefit takes priority The law aims to prevent people becoming reliant on benefits: if your income together with housing benefit is enough to cover your living costs and rent, housing benefit is the priority benefit. The Jobcenter can then require you to apply for housing benefit – and there is then no entitlement to citizen's allowance.
The direct comparison
| Feature | Housing benefit | Citizen's allowance |
|---|---|---|
| Purpose | Subsidy towards housing costs | Covers your entire living costs |
| Requirement | You have your own income and stay within the income limit | Financial need: income and assets are not enough |
| Assets | Savings of up to €60,000 (first person) or €30,000 (each additional person) are disregarded | Separate, stricter asset rules apply |
| Housing costs | Subsidy based on the high rent level 6 (Hamburg) | Reasonable housing costs are covered |
| Responsible in Hamburg | The housing benefit office at your district office | Jobcenter team.arbeit.hamburg |
| Working? | Yes – especially for employees on low incomes | Top-up possible if your income is low |
The rule of thumb Do you have your own income – from work, a pension or unemployment benefit I? Then check housing benefit first. If you have no income at all, citizen's allowance is the right route. When in doubt, apply for housing benefit – the housing benefit office will check your entitlement.
Frequently asked questions
Can I get housing benefit and citizen's allowance at the same time?
No. Citizen's allowance already includes housing costs, so there is no housing benefit entitlement alongside it. You receive either housing benefit or citizen's allowance.
The Jobcenter tells me to apply for housing benefit. Do I have to?
If your income together with housing benefit covers your needs, housing benefit takes priority – the Jobcenter can require you to apply. There is then no longer any entitlement to citizen's allowance.
What speaks in favour of housing benefit?
Housing benefit keeps you independent: you stay outside the citizen's allowance system, the asset limits are more generous and the assessment focuses on income and rent. For many households on a low income, it is the right route.