Overview
- The federal housing ministry circulated a draft law that would reduce parts of Wohngeld from 2027, most notably a cut to the heating and warm‑water allowance that lowers single‑person support from €110.40 plus a climate add‑on to €62.40 plus the climate add‑on.
- The draft changes income and asset treatment by half‑counting several allowances, excluding some employer pension contributions and the saver’s allowance, raising the minimal payable threshold from €10 to €15, and defining asset caps that start at €60,000 for applicants with an absolute ceiling of €120,000.
- The ministry projects the rewrite will save about €1.5 billion in 2027 and roughly €2 billion in 2028, with costs shared equally between the federal government and the Länder.
- Separate reforms took effect on July 1, 2026, when Grundsicherung replaced Bürgergeld and limited Jobcenter housing payments in the initial period to 1.5 times the local adequacy level, producing immediate rent shortfalls for many new claimants who now must meet the gap from a monthly basic payment.
- Social associations and regional politicians warn the combined changes could raise rent and energy debt, deepen housing insecurity for retirees and families, and trigger contentious federal‑state negotiations and further expert work through autumn 2026.