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Germany Proposes Ending Wohngeld Payments Below €15

The draft law would shrink annual housing subsidies to save about €1 billion for both the federal government and the Länder, risking benefit loss for hundreds of thousands of low‑income households.

Overview

  • In August 2026 the federal draft to amend the Wohngeldgesetz would remove entitlement when the calculated monthly Wohngeld is under €15, a change set out in a bill called “zur Vereinfachung und Fortentwicklung des Wohngeldgesetzes.”
  • The ministry says federal Wohngeld spending was about €2.49 billion in 2025 and the reform is pitched to save roughly €1 billion each for the federal government and the Länder, which the minister has said would cut eligibility for about one third of current households.
  • Groups that represent tenants and low‑income people warn the rule will hit renters and pensioners hardest because many currently receive small top‑ups that would disappear or turn into payment gaps.
  • Recent legal and benefits changes increase practical risks for recipients: a July 1, 2026 tightening of Grundsicherung rules limits Jobcenter coverage of housing costs during the grace year, and social‑court rulings have narrowed when voluntary payments count as a legal rent obligation.
  • Advocacy organisations report concrete cases of new rental shortfalls and growing disputes, and recipients must report moves or other life changes under the WoGG or face repayment demands and fines of up to €2,000 for late or missing notifications.