Two Bundesrat committees want to reject planned cuts to housing benefit (Wohngeld) set to start January 1, 2027. The full Bundesrat votes on the committees’ recommendation on September 25, 2026.
Four Wohngeld Changes Take Effect January 1, 2027
Germany’s cabinet (Bundeskabinett) approved the Wohngeld reform draft on July 6, 2026. The reform draft combines budget savings with less paperwork.
Wohngeld normally rises every two years with rents and energy costs. The Wohngeld increase due January 1, 2027 is suspended under the reform draft.
The heating cost component (Heizkostenkomponente) is cut in half. The heating cost cut applies by household size:
- Single-person households: €96 drops to €48 per month.
- Two-person households: €124 drops to €62 per month.
- Three-person households: €148 drops to €74 per month.
Two more changes affect your Wohngeld payment:
- The income formula counts your earnings 58% more heavily against your benefit.
- The minimum monthly payment rises from €10 to €15. The new €15 minimum removes any household whose calculated Wohngeld falls below that amount.
The Bundesrat’s Committees Call the Wohngeld Reform Draft Disproportionate
The Housing Committee and Social Affairs Committee both want the Wohngeld reform draft rejected. Both committees call the impact “unverhältnismäßig” (disproportionate).
Retirees on modest pensions make up over half of current Wohngeld recipients. Single parents and low-income working families are also hit hard.
The government projects €1.476 billion in gross Wohngeld savings for 2027. Projected gross savings grow to €2.16 billion by 2028.
But the Housing Committee and Social Affairs Committee say much of those savings are not real. Around 143,000 of those 381,000 households would need Bürgergeld or Sozialhilfe instead of Wohngeld.
Bürgergeld is basic income support under SGB II. Sozialhilfe is social assistance under SGB XII.
Bürgergeld and Sozialhilfe are both funded jointly with Kommunen. The Housing Committee and Social Affairs Committee argue the Wohngeld reform draft shifts costs. The reform draft does not cut them.
The Wohngeld reform draft has a smaller effect on the child supplement (Kinderzuschlag). Some families lose the child supplement entirely, cutting about €65 million a year.
Meanwhile, the Finance Committee’s disagreement with the Housing Committee and Social Affairs Committee makes the September 25 vote outcome uncertain.
NOTE: The Wohngeld reform is still a cabinet draft, not law. The September 25 vote covers only the committees’ opinion (Stellungnahme).
What Should Current Wohngeld Recipients Do Before 2027?
Two changes could affect your Wohngeld starting in 2027:
- If your award period runs into 2027: Expect a recalculation. Gather updated income and rent proof now.
- If the heating cost cut or income rule changes push you below the threshold: You could lose eligibility even with no change in your own situation. Ask your Jobcenter or Sozialamt about Bürgergeld or Sozialhilfe early.
