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German Cabinet Suspends 2027 Wohngeld Increase and Cuts Heating Component

A cabinet decision now halts a planned 2027 boost, halves the heating allowance and alters the calculation formula, putting many future benefit levels at risk.

Overview

  • The government has paused a scheduled 2027 adjustment to Wohngeld, reduced the weight given to heating costs and changed the calculation method, a move that could reduce payments or strip some households of entitlement.
  • Wohngeld remains a targeted housing subsidy whose eligibility and amount are set mainly by three factors: the number of household members, the household's relevant income and the recognised rent or owner burden.
  • Owners of self-used homes can qualify for a Lastenzuschuss when mortgage interest, repayment or running costs create excessive financial strain, but support is limited to certain ownership forms and cost items.
  • Children count as household members while the home is their main residence and any permanent change in household composition must be reported to the local Wohngeld office under §27 WoGG, which can trigger recalculation or reduction of benefits.
  • Certain social payments such as Krankengeld, ALG I or pensions do not automatically bar Wohngeld but are treated as income for the calculation, and recent court rulings clarified that higher housing costs after a move require a prior written assurance from the Jobcenter to be recognised.