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Cabinet Draft Cuts Wohngeld and Narrows Who Gets It

The Cabinet proposal would reduce federal Wohngeld spending through cuts that narrow eligibility.

Overview

  • The Bundeskabinett has put a Gesetzentwurf forward that seeks to save €1.5 billion next year and about €2 billion annually from 2028 by cutting Wohngeld.
  • Planned design changes include stopping automatic adjustments for inflation and rents, halving the heating-cost component, and changing the calculation so fewer households qualify.
  • Official figures show nearly 49,000 households in Rheinland-Pfalz received Wohngeld at the end of 2024, about half of them single-person households and many older pensioners.
  • Social groups and state politicians from multiple parties warned the cuts will push vulnerable people toward Grundsicherung and called the proposal socially harmful.
  • Ministry calculations say the change would shift costs to municipalities, with estimated extra national municipal expenses of €33 million next year and €58 million in 2028.