Wohngeld Housing Benefit Faces €2 Billion Annual Cuts as Minister Confirms Reductions
Germany's federal housing minister has confirmed plans to cut Wohngeld (housing benefit) by €2 billion annually, affecting one-third of the 1.2 million households currently receiving support.
Germany's federal housing minister has confirmed plans to cut Wohngeld, the state benefit that tops up rent payments for lower-income households, by €2bn a year. Verena Hubertz has submitted a draft bill for inter-ministerial consultation that would reduce annual spending on the benefit from around €5bn to roughly €3bn, with the federal government and the states each finding €1bn in savings.
Who Will Be Affected
The impact will be substantial. The practical effect, by Hubertz's own account, is stark: a third of the 1.2 million households currently receiving Wohngeld will lose their entitlement altogether. "The cuts to housing benefit will, unfortunately, affect all current recipients," she said.
These cuts come despite earlier reforms that expanded the program. Before 2023, Wohngeld reached around 600,000 households. The Wohngeld-Plus-Gesetz changed that substantially when it came into force in January 2023, expanding eligibility to roughly 2 million households. In January 2025, Wohngeld increased again by an average of 15%, adding roughly €30 more per month per household, bringing the average payment to around €400/month.
What this means for expats: If you currently receive housing benefit or are considering applying, act soon. Eligibility rules may tighten significantly. EU citizens qualify on the same terms as German nationals. Non-EU citizens with a valid residence permit can also apply. However, the proposed cuts will reduce payouts for existing recipients and shrink the program substantially. Check your eligibility now at your local Wohngeldstelle (housing benefit office) before rules change.
Sources
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