Overview
- The Bundeskabinett approved a Gesetzentwurf in early July 2026 and sent it to the Bundestag for debate with an intended start date of January 1, 2027.
- The draft changes the calculation by suspending the planned dynamization, halving the heating-cost component and tightening income and entitlement rules.
- The ministry estimates about 381,000 households would lose Wohngeld and roughly 143,000 of those could shift into basic social assistance (Grundsicherung); roughly 1.2 million households currently receive Wohngeld.
- Independent analyses and welfare groups warn that families with children and many retirees are especially exposed, with the Paritätischer Gesamtverband finding that a large share of people in Wohngeld households are children.
- Existing Wohngeld decisions remain valid until they expire, local authorities issue binding awards, calculators and procedures must be updated if the law passes, and political opposition and social organizations are pressing the Bundestag to reject or amend the plan.