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German Labour Minister Proposes Municipal Per-Square-Meter Cap on Bürgergeld Rent

The measure will be written into a forthcoming welfare reform draft to curb exploitative rents in overcrowded, substandard housing.

Overview

  • Bärbel Bas said the cap will appear in her Bürgergeld reform bill to be presented in the coming weeks, according to comments published in Bild am Sonntag.
  • The tool would let municipalities limit reimbursable rent per square meter to undercut schemes that extract triple‑digit euro rates for slum flats.
  • Reports describe organized groups overfilling dilapidated apartments, with each resident reimbursed at the local single‑flat rate and payments skimmed by perpetrators.
  • Separately agreed coalition plans tighten sanctions, including full benefit cuts after repeated missed Jobcenter appointments or refused job offers, which an Insa poll shows most respondents support.
  • Debate continues as DGB chief Yasmin Fahimi rejects claims of widespread abuse, while CDU’s Carsten Linnemann touts potential savings in the billions and Bas stresses employment‑driven savings.