Cabinet Bill Would Pause Wohngeld Index Increase Planned for January 2027

Overview

• The federal cabinet approved a draft law by Housing Minister Verena Hubertz in July 2026 that would suspend the Wohngeld law’s automatic two‑year indexation and could prevent the increase due on January 1, 2027.
• As of late October 2026 the draft is before the Bundestag with a Länder statement sent to the federal government and a Bundesrat decision still required, so the pause is possible but not final.
• Under current law (§43 WoGG) Wohngeld is adjusted every two years to a Statistisches Bundesamt index for rents and consumer prices, which produced the last rise that took effect on January 1, 2025.
• Eligibility and payment size depend on three clear factors: the number of household members, the household’s total assessable income, and the eligible rent or owner burden for the primary residence, with examples showing big regional differences such as Munich’s lower‑income thresholds.
• Between government and statistical reports the count of beneficiaries varies (government cites about 1.9 million helped by the 2025 increase while official statistics report roughly 1.2–1.3 million at end‑2025), and a frozen 2027 rate would tighten budgets for many low‑income families, retirees, students, and owner‑occupiers who rely on the grant.