Anyone who receives housing benefit to cover their own housing costs expects security. The shock is even greater when the assistance later turns out to be a financial burden. This is exactly what can happen if income circumstances change retroactively, for example as a result of a later approval of a disability pension.
What is actually intended to provide welfare benefits can have unexpected consequences for those affected. According to the Ministry of Regional Development and Housing of Baden-Württemberg, housing allowance is calculated on the basis of total income. If the disability pension is paid retroactively, the income for the corresponding period also increases. The original entitlement to housing benefit may subsequently be lost.
This hits especially hard for those who have already planned for the services they received or even used them to cover ongoing expenses. Unexpected housing benefit payments can create financial problems for those affected. So could a disability pension be a disadvantage for housing benefit recipients?
Do recipients have to repay housing benefit they have already received?
If your income increases, the Housing Benefit Authority will review your eligibility. According to Section 30 of the Housing Benefit Act (WoGG), housing benefit paid in error can be returned. The repayment obligation usually extends for the last three years before the authority becomes aware of it.
As explained in the city of Weimar, such a return does not occur immediately, but within the framework of a regulated procedure. Victims will first be heard and informed of the proposed decision and the reasons for it. Only after this will the authority responsible for providing housing benefits issue a notice of refund.
How does the disability pension affect housing benefit?
The housing allowance is calculated on the basis of the total income, explains the Ministry of Regional Development and Housing of Baden-Württemberg. If the additional income increases by more than 15 percent of the originally calculated value in accordance with Article 27 WoGG, the right to social benefits may be lost in whole or in part.
It does not matter whether the income comes from a subsequent pension or from other sources. As set out in section 27 of the WoGG, it is important that the authority takes action within the permitted review period and recalculates housing benefit accordingly.
When does the obligation to pay housing benefit arise?
If income is increased retroactively, for example through the subsequent approval of a disability pension, the responsible authority for housing benefits will review eligibility, the city of Weimar reports on its website. If the pension is paid retroactively, this money is considered income for the relevant period.
As a result, it may later turn out that the right to housing benefit was absent or was only reduced. Result: The original housing benefit notice is canceled in whole or in part. In this case, an obligation to repay arises. This is also confirmed by the decision of the Koblenz Administrative Court from 2021.
However, there are also limitations: those who were able to believe in the legality of the decision may be protected under certain circumstances. If victims have rightly assumed that they will be allowed to retain housing benefit, the so-called trust defense applies. However, this does not apply if the victims knew about the illegality, provided false information or obtained the service fraudulently, according to the city of Weimar.
Can I go to court to get my housing benefit back?
Many victims wonder whether they will be able to avoid the return of a subsequent disability pension payment by relying on this trust protection. This is not provided for by the Housing Benefits Law. Case law confirms that this reliance on housing benefit already paid does not apply if income subsequently increases.
According to the legal portal beck-aktuell, this was clearly demonstrated by the decision of the Koblenz administrative court. In this case, the recipient had to repay the assigned housing allowance retroactively after the award of a disability pension for the same period. Although the money was used to pay household expenses, the plaintiff was not protected from collection.
According to section 28 WoGG, victims are required to report a new income situation, for example through pension payments, arrears of payments or other social benefits. Anyone who has already received a complaint has the right to check it and file an objection, even if the chances of success are limited.