After joining the ranks in 1912, he served as an officer in World War I, entering the NSDAP in 1922 and taking part a year later in the fighting in the Ruhr. An SA -Leader in 1924 and deputy Gauleiter in the Ruhr region, Lutze was subsequently promoted to SA-Oberfuhrer in 1928. In 1930 he became a Nazi member of the Reichstag, representing the electoral district of South Hanover-Braunschweig. Appointed Police President of Hanover in March 1933 and Oberprasident (a post he held until 1941), Lutze became a member of the Prussian State Council in the same year. Following the Blood Purge directed against Ernst Rohm and other SA leaders, in which SA-Obergruppenfuhrer Lutze was closely implicated, he was officially designated by Hitler as Chief of Staff of the SA on 1 July 1934.
Lutze held the position until his death in a car crash on 2 May 1943. Under his leadership the SA played an insignificant role in the Nazi State, its influence having declined drastically as a result of the Rohm purge.