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Germany Plans to Scrap Bürgergeld Housing Grace Period as Backlash Grows

Social groups warn that immediate relocation in a tight rental market could trigger evictions and homelessness.

Overview

  • Labor Ministry drafts a reform that would end the one‑year housing grace period for Bürgergeld recipients and require immediate moves from flats deemed too expensive, alongside tougher sanctions.
  • VdK and SoVD say affordable alternatives are scarce and caution that cutting rent coverage from day one would push households to reduce essentials or lose housing.
  • New data cited in coverage highlight structural constraints, with 2024 housing permits down 16.8% and experts reporting a shortfall of social homes.
  • Media cases intensify pressure for changes, including an RTL2‑documented Pirmasens couple who received about €3,400 per month through overlapping Bürgergeld and unemployment benefits due to administrative errors.
  • A recent regional court ruling limited the recovery of overpaid benefits, while TV reports spotlight payment delays, alleged fraud and undeclared side incomes that fuel the broader debate.