Anyone who receives housing benefit (Wohngeld), or plans to apply, should not wait until January. The federal government wants to cut it noticeably from 1 January 2027, and the Bundestag is holding its first reading of the bill today (Drucksache 21/8284). Nothing is final, but the deadlines that decide how much you get are already running.
Three changes stand out. The scheduled increase due on 1 January 2027 would be skipped once; the last one came in early 2025. The permanent heating-cost component would be halved, from €96 to €48 for a single person and, according to Stuttgarter Zeitung, to €86 for a household of four. And the formula parameter “c” would rise by 58 per cent, so income eats into the benefit faster. A new floor also applies: if the calculated amount is under €15 a month, nothing is paid. The government cites budget consolidation and less red tape, saying spending and administrative workload have “risen sharply in recent years”.
How many households would lose out?
The numbers differ. Around 1.2 million households currently receive Wohngeld. In its reply to an AfD inquiry (Drucksache 21/7689) the government says about 238,000 would lose entitlement entirely by 2029 and roughly one million would keep it at a lower level; 68,000 households would move to basic income support (SGB II) and 75,000 pensioner households to old-age basic support. Bundesrat committees speak of more than 380,000 households, but that is criticism, not an official calculation. Savings are also stated differently: the government reply gives €738m each for the federal and state governments in 2027, while the Bundestag page on the bill cites €1.156bn for the federal budget. We could not reconcile the two; the way knock-on costs are counted is the likely reason.
On 25 September the Bundesrat gave its opinion. It welcomes the simplifications but warns that the freeze and the heating cut weaken support for low earners and could push more people into basic income support, and it demands full compensation for municipalities. Because the law needs the states’ consent, the Bundesrat will vote again. Amendments in the Bundestag are possible.
What it means for your application
The draft contains transition rules that reward acting early. A notice issued before 1 January 2027 keeps its current amount until it expires, normally after 12 months, in exceptional cases 24. Wohngeld is paid from the first day of the month in which you apply, so an application filed on 20 November counts from 1 November. If it is decided in 2027 and the new calculation is lower, the draft lets you keep the higher December amount for the rest of the period. Apply only in January and that protection does not apply. For renewals, file roughly two months before your notice ends.
Wohngeld cannot be paid alongside Bürgergeld (soon to be renamed basic income support). For Ukrainians with protection under § 24 it is therefore mostly relevant if you work or draw a pension on a low income. Apply at the Wohngeldstelle of your city or district; an objection against a decision must be filed within one month. If Wohngeld ends, check child supplement (Kinderzuschlag) and basic support, both applied for separately.
Our assessment: details will probably be adjusted in parliament, but the core direction, savings on heating and a tougher formula, is likely to stay. Do not count on it. An application this year costs nothing and locks in the old values.
Sources: Bundestag, Drucksache 21/7689, Bundesregierung, Stuttgarter Zeitung, Gegen-Hartz
