Germany Plans Wohngeld Overhaul to Save €1 Billion in 2027

Overview

• The housing ministry said it will meet roughly €1 billion in 2027 savings by restructuring the Wohngeld housing subsidy.
• The Sozialstaatskommission’s blueprint to bundle Wohngeld with basic security and the child supplement is a leading option, with a concept expected by autumn 2026.
• Tenant advocates and Green and Left lawmakers warn of cuts and urge the government to prevent worse outcomes for eligible households.
• Existing recipients keep their current rate unless their counted income rises by more than 15%, and the 2026 pension increase stays below that threshold.
• Wohngeld supported about 1.2 million households with €4.7 billion in 2024 spending, and more than half of recipient households are retirees with many families also eligible.