The German government wants to restructure housing benefits. A corresponding draft law passed the cabinet. The goal is to relieve the federal budget while cutting bureaucracy in authorities. Spending and administrative workload had risen significantly in recent years.
At the core of the reform is a reduction in housing benefit payments, set to take effect on January 1, 2027. At the same time, procedures are to become simpler: for instance, the frequency of checks will be reduced, and the requirement to provide proof of severe disability or need for care will be eased. The burden will also be lowered for children who live alternately with separated parents. Existing approvals remain unchanged – they are valid until the end of their term, usually twelve, sometimes 24 months.
Housing benefit is a state subsidy for tenants and owner-occupiers with low incomes. Under the new rules, some households will lose eligibility. However, the government stresses that those in need will continue to receive support.
Source: Bundesregierung
