Germany Plans to Cut Wohngeld Heating Allowance From 2027

Overview

• The government published a cabinet draft in July 2026 that would cut the permanent monthly heating amounts used in the Wohngeld calculation by half from 1 January 2027.
• The separate CO₂-related monthly heating supplement is kept at its current level, so statutory heating relief will be the reduced permanent amount plus the unchanged CO₂ top-up.
• Wohngeld is not a reimbursement of actual bills but a formula that adds fixed heating amounts to capped rent and then compares that to household income, which means the reform will produce uneven effects and could end entitlement for some households after recalculation.
• Already approved Wohngeld awards remain valid until the end of their current Bewilligungszeitraum, though changes in income, household makeup or a formal recalculation can cause the new rules to apply from January 2027.
• Local Wohngeld offices advise people to check their Bewilligungsenddate, submit Weiterleistungsanträge in time and report fixed‑term jobs or income changes so they can avoid unexpected payment gaps under the new rules.