Overview
- A government draft to “simplify and develop” the Wohngeld law would stop recognising higher actual Werbungskosten for certain incomes and instead allow only the Arbeitnehmer‑Pauschbetrag when calculating anrechenbares Einkommen.
- The Bundestag held a first debate on the bill on 8 October and referred it to committees, so the measure is under parliamentary review and not yet law; applicants should continue to claim verifiable higher work expenses under current rules.
- Under the draft a commuter who now deducts the Entfernungspauschale could see his or her assessed income rise substantially, which would often reduce or eliminate Wohngeld once local rent, household size and other deductions are applied.
- Several other reforms already decided to take effect on 1 January 2027 will change household net income and benefit interactions, including a higher minimum wage, a raised Minijob threshold, tougher Krankengeld rules after employment ends, and the new Altersvorsorgedepot.
- Practical points for claimants: apply at your local Wohngeldstelle with full documents, know that Wohngeld is paid from the month of application only, and file a separate simultaneous Kinderzuschlag claim at the Familienkasse if eligible because the two payments are handled and paid by different agencies.