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German Cabinet Approves Rule Change That Cuts Wohngeld Heating Component

The change suspends a planned 2027 increase, halves the heating allowance, and rewrites the calculation formula, risking cuts to many recipients’ payments from January 2027.

Overview

  • The Bundeskabinett has approved a re‑regulation of the Wohngeld law that suspends the planned 2027 increase, halves the heating component and alters the calculation method, with the changes due to take effect in January 2027.
  • Household entitlement still rests mainly on three factors: number of household members, total household income, and eligible rent or financial burden; roughly 1.2 million households currently receive Wohngeld.
  • The rule change targets the heating and climate add‑ons introduced in 2023, so many recipients could see sharply lower monthly supplements or lose eligibility once the new formula is applied.
  • Claim assessments continue to treat income replacement payments such as Krankengeld as countable income, apply asset guidance (about €60,000 for the first person and €30,000 per additional person), and limit uncounted private support to €480 per year in many cases.
  • Recipients must file renewal (Weiterleistungsantrag) with local Wohngeldbehörden, report income changes promptly, and beware that false or negligent declarations can trigger repayment demands or fines of up to €2,000 under §37 WoGG.