Berlin Court Ends Citizen's Allowance Scam: Job Centers Must Now Act Fast

A significant ruling has been made by the Arbeitsgericht Berlin (Labor Court Berlin) in July 2025, addressing a long-standing issue in Germany's social welfare system. The court has put an end to a citizen's allowance scam involving job centers failing to process applications or appeals within legally prescribed deadlines.

The case involved a 67-year-old woman from Berlin who waited in vain for months for a decision regarding her citizen's allowance extension applications. The Higher Social Court of Berlin-Brandenburg ruled that forwarding a copy of a decision to the court does not constitute valid notification. The job center's practice of sending decisions to the social court instead of the applicant was deemed invalid.

The court's ruling has far-reaching implications. It has established that affected persons retain their right to legal protection until they receive the decision in an orderly manner. This means job centers must now ensure decisions are sent to the correct address and in a timely fashion. The ruling also highlights the increasing trend of disputes between benefit recipients and job centers ending up in social courts, often due to delayed decisions, incorrect calculations, and systematic delays.

The court's decision serves as a strong reminder to job centers of their legal obligations in processing citizen's allowance applications and appeals. It also underscores the importance of proper notification procedures to ensure recipients' rights are protected. The ruling is expected to improve the processing of citizen's allowance claims, benefiting those in financial distress.