Government Draft Would Freeze 2027 Wohngeld Increase and Set €15 Minimum

Overview

• The Bundeskabinett approved a draft bill in July 2026 that would suspend the next scheduled Wohngeld indexation and add a rule that no monthly payment below €15 may be paid.
• Officials say the change is meant to cut spending and could eliminate roughly one third of current Wohngeld households, a figure the housing minister and several reports have cited as about 400,000 affected households.
• Under existing law, Wohngeld is paid from the month of application and retroactive payments before that month are only allowed in narrow cases such as a rejected prior social-benefit claim within four weeks.
• Recipients must notify local Wohngeld offices promptly about moves, household changes, income shifts and provide full documents like complete rental contracts and rent payment proofs to avoid payment gaps, repayments or fines.
• The proposal now goes to the Bundestag where tenant groups and the Sozialverband Deutschland oppose it, and a parliamentary vote will determine whether the suspension and €15 floor take effect and how many pensioners or vulnerable households lose support.