Overview
- The government’s referentenentwurf would rename Bürgergeld to Grundsicherungsgeld from July 2026 and, via §22(4) sentence 4, limit recognized accommodation costs to the previous level for intra-area moves deemed not required, with the draft still subject to parliamentary changes.
- Tacheles e. V. and social-law specialists, including Dr. Utz Anhalt, say the wording amounts to a de facto cap and advise securing prior jobcenter approval for any move, while civil-society research flags potential constitutional concerns.
- Fiscal claims diverge sharply: Chancellor Friedrich Merz has touted roughly €5 billion in savings, but the labor ministry’s impact estimate for 2026 points to about €86 million, as IAB research notes widespread placement barriers among recipients.
- Wohngeld, a separate housing subsidy, rose by about 15% in January 2025 and is next due for recalculation in January 2027; about 1.2 million households receive it though roughly two million may be eligible.
- On-the-ground reporting describes overloaded offices, delays and confusion in jobcenter processes, and consumer warnings about online scams targeting Wohngeld applicants.