Particle.news

Government Proposes Major Cuts to Wohngeld

The draft reduces Wohngeld through suspended indexation, a halved heating-cost component, a revised calculation to free funds for housing construction.

Overview

  • The housing ministry introduced the draft in a late-night first reading on Friday and the bill now moves to Bundestag committees and further budget talks before any final votes.
  • The proposal would stop routine inflation and rent indexation, cut the heating-cost component by half and change the calculation so most recipients receive less support.
  • Official estimates in the draft say the measures would save the federal and state budgets €738 million each next year and about €1 billion each from 2028.
  • The ministry’s impact figures show roughly one third of current recipients would lose entitlement, with about 381,000 households affected and some 143,000 expected to move into basic social security.
  • Opposition parties, social organisations and parts of the SPD have criticised the plan for hitting renters, families and pensioners and warned of higher arrears, evictions and pressure on welfare systems.