Particle.news

Germany Plans Housing Benefit Overhaul to Save €1 Billion in 2027 Budget

The move puts aid for 1.2 million low‑income households, many of them seniors and families, under review.

Overview

  • Germany’s Housing Ministry said it will meet a €1 billion savings target by restructuring the housing benefit for the 2027 federal budget.
  • Officials have not released draft rules, with a full design due by autumn 2026 ahead of the government’s 2027 budget plan.
  • The Social State Commission proposed merging housing benefit, child allowance, and basic income, and Labor Minister Bärbel Bas said she will pursue that approach.
  • The German Tenants’ Association and politicians from the Greens and the Left warned against cuts or tighter eligibility and urged stronger rent controls and more social housing.
  • An often-cited quick fix, dropping the legal requirement to mail paper decisions, would save about €2.2 million, which is far short of the €1 billion goal.