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Germany Plans Wohngeld Overhaul to Deliver €1 Billion in Savings

The move puts a key housing subsidy at risk for low‑income households.

Overview

  • The housing ministry, which confirmed Tuesday it will meet a €1 billion savings order by restructuring Wohngeld, has not detailed the measures and says specifics will come with the 2027 budget draft.
  • The German Tenants’ Association warned against any steps that cut payments or leave eligible renters worse off, while the DGB union urged the government to lower rents by building and capping prices instead of trimming aid.
  • Left and Green lawmakers condemned possible reductions and pressed for tougher rent rules, as Wohngeld is a targeted top‑up that helps households with low earnings cover rent or housing costs.
  • About 1.2 million households received Wohngeld in 2024 with spending near €4.7 billion, and many recipients are families and retirees who could face higher rent burdens if support shrinks or access tightens.
  • The plan sits alongside talks to fold Wohngeld into a unified system with basic income support and the child supplement, with a new basic security scheme due in mid‑2026 and full Wohngeld changes expected to surface in the 2027 budget proposal.