How much will the jobcentre pay for my rent and bills in Germany?

Germany's economy is in the midst of a downturn at the moment, with several companies facing financial crises and cutbacks.

Recently, crisis-hit Volkswagen has been in the headlines after cancelling a decades-old deal to protect jobs at its German plants. It has since refused to rule out layoffs at a number of its factories, as well as at those of its subsidiaries. 

The situation at the car manufacturer has become a symbol for the county's gloomy economic outlook:  Germany's GDP is forecast to shrink by 0.2 percent this year, following a 0.3 percent decline last year.

Though things are expected to improve next year, the stark reality is that many people are facing redundancies and periods of unemployment. For some of these workers, claiming long-term unemployment benefits - called Bürgergeld, or Citizens' Allowance, is the only option.

READ ALSO: Why is Germany's economy so sluggish and what does it mean for you?

If you're in this situation, you may be wondering what it means for your housing situation and current lifestyle. Here are some of the guidelines you need to know about.

How much money does the jobcentre pay for rent?

For single jobseekers, the monthly Bürgergeld allowance is set at €563, with an additional allowance provided for partners and dependent children.

In addition, the jobcentre promises to cover the costs of "reasonable" rent and bills, which theoretically means that your living costs will be taken care of.

It's important to note that new Bürgergeld claimants are given a so-called grace period of 12 months: during this time, the jobcentre won't check if your rent is too high or the amount of savings you have, for example. 

After this point, however, the authorities do have the right to refuse to pay rents that are deemed unreasonable - or only cover them up to a certain point.

That means that someone living in an expensive property may need to pay part of their rent out of their monthly allowance or savings while claiming Bürgergeld.

Given that rental costs vary massively around Germany, the amount that's considered reasonable also varies and will be set by your local jobcentre. That means that someone living in central Munich will have a different threshold from someone living in rural Thuringia, for example.

READ ALSO: Why Germany will not raise unemployment benefits next year

As a rule of thumb, you can expect big cities to have a higher rental threshold than smaller towns with cheaper rents. This is always based on what's known as the Bruttokaltmiete, or gross cold rent, which is your base rent including service charges but excluding other bills like heating costs.

In Munich - Germany's most expensive city for rents - the jobcentre allows for a cold rent of €849 for a single person and up to €1,569 for four people, with higher rents for larger households.

In Berlin Mitte, the figure is €449 for a single household and €772 for a four-person household, while in Frankfurt am Main, it's €786 for single people and €1,219 for families of four.

READ ALSO: Four steps to take straight away after losing your job in Germany

If you want to check how much you're entitled to, you can find a helpful chart covering the rental thresholds for major German cities on the Bürgergeld.org website.  

If your city or town isn't covered, you can Google the name of your local jobcenter and the words "angemessene Bruttokaltmeite" (reasonable gross cold rent) to find out how much you'll be able to claim. So if you live in Aachen, for example, you would search for "Aachen Jobcenter angemessene Bruttokaltmiete" to find out the threshold where you live. 

What happens if my rent is too high?

Given soaring rents on the private rental market, there's a growing discrepancy between the amount to money paid by the jobcentre and actual costs faced by unemployed tenants.

Recently, it emerged that jobseekers pay an average of €107 extra for their rents out of their own pockets nationally, and as much as €338 extra in expensive cities like Stuttgart. 

If you're in this situation, renting out a spare room in your apartment or trying to find a cheaper one are both potential options. 

In both situations, you'll have to declare your plans to the jobcentre. If you're planning on moving, the authorities will also have to green-light your new rent before you sign the contract. 

People on long-term unemployment benefits are also allowed to earn a certain amount from part-time work while claiming Bürgergeld. Though you will have to pay a portion of your earnings back to the government, the extra income could assist you with covering your living costs for the time being.

Alternatively, you could check if your rent is illegally high and attempt to get a reduction from your landlord.

READ ALSO: How a 'Mieterverein' can help you reduce your rent in Germany

How much can I claim for my heating bill?

Unlike with rents, there's no grace period for heating costs, meaning the jobcentre will immediately check whether your bills are too high.

The analysis is based on the national Heizspiegel, which calculates heating costs based on standard usage over the course of a year, as well as your living space and the type of heating you have.

The German Tenants' Association has a helpful calculator that allows you to check how your current heating costs compare to the Heizspiegel. Usually, a single household will be expected to use up to 6,500 kilowatt hours of energy throughout the year, increasing to up to 12,350 for a four-person household.

Of course, some people may need to use more heating for personal reasons, and these will be taken into account by the jobcentre when they assess your claim.

For example, they may look at whether you have a chronic illness or are elderly, or whether there are young people living in the house. If your apartment has bad insulation, this can also be a reason to allow for higher heating costs. 

Are there any other rules I should be aware of?

As well as a cap on the amount of rent you can claim, the Ministry for Labour and Social Affairs also sets out the amount of living space deemed reasonable for households of different sizes.

Unlike rents, however, this is the same regardless of where you live. 

For a single person, a living space of 45-50 square metres is seen as reasonable, with 10-15 square metres extra for each additional person.

READ ALSO: '€1,000 job bonus' - How Germany will overhaul unemployment benefits

That means that a couple would be allowed 60-65 square metres, a three-person household would be allowed 75-80 square metres and a family of four would be allowed 90-95 square metres.

Once again, this will be ignored during the first year or your claim, but after this point you may be asked to downsize.

There are exceptions to this rule, however, and a lot will depend on the rental market in your area.

If you happen to be on an old contract in social housing in Berlin, for example, it may make more sense for you to stay in an affordable 70 square metre flat rather than seeking out a new contract on a 45 square metre flat that would likely be more expensive.

Useful vocabulary

reasonable / proportionate - angemessen

unemployment benefits recipient - (der) Bürgergeld-Empfänger

grace period - (die) Karenzzeit 

rental costs - (die) Mietkosten