Overview
- The first reading takes place on 15 January, with committee hearings under way, a Bundestag vote expected in early March, and the reform slated to start on 1 July 2026 if passed.
- Key provisions include a reinstated job‑placement priority, stepped penalties of 30% for repeated breaches, possible full suspension when a job would end need, removal of the asset grace period, age‑tiered asset allowances, and tighter recognition of housing costs with municipal square‑meter caps.
- Unions and welfare groups warn of heightened poverty and potential homelessness, urge scrapping full benefit cuts and shielding households with children, disabled people and those needing care, while employer groups push for consolidating benefits and simpler administration.
- Wohngeld remains a separate housing top‑up for roughly 1.2 million households, averaging about €287 a month with no further increase in 2026, and it is paid in advance on the last banking day of each month under WoGG §26.
- Eligibility for Wohngeld covers tenants and owner‑occupiers via the Lastenzuschuss, with statutory income exemptions such as €1,800 yearly for severe disability and pension‑related relief for long insurance histories.