Overview
- The federal cabinet approved the draft law on Monday that will take effect on 1 January 2027 and is designed to lower Wohngeld spending and simplify rules.
- Key technical changes in the draft include suspending a planned general increase, halving the heating-cost component of payments, and changing the formula used to calculate entitlements.
- Officials warn the redesign will remove some households from benefit rolls but say already approved twelve-month decisions remain valid until they expire.
- Local offices are already handling far larger caseloads after the 2023 Wohngeld‑Plus expansion; Augsburg currently has about 5,400 recipient households in the city and about 2,400 in the county and reports three- to four-month processing times.
- Applicants should provide full documentation and report changes promptly because eligibility and benefit size depend on household size, income, local rent stage and special allowances such as the €1,800 disability/care Freibetrag, and mistakes can trigger repayment or fines.