Coalition Allies Turn on Housing Minister as Benefit Cuts Threaten 400,000 Households
20.06.2026 - 06:52:22 | boerse-global.de
A push by Federal Building Minister Verena Hubertz to slash housing benefit spending by two billion euros annually is drawing fire not only from opposition parties and tenant groups but also from within her own Social Democratic Party. The planned savings would reduce total annual Wohngeld outlays from five billion to three billion euros, with half the burden falling on the federal government and half on the states.
Hubertz described the move as "painful, yet necessary," pointing to the austerity targets written into the 7 federal budget. A draft bill to amend the Wohngeldgesetz (Housing Benefit Act) is already circulating among ministries for clearance.
According to the ministry’s projections, roughly one in three of the 1.2 million households currently eligible for the subsidy would lose their entitlement—an estimated 400,000 households. Benefits already granted are to remain valid until their expiry dates, providing temporary relief for recipients.
The backlash has been swift. Die Linke called the plan "antisocial cuts" and warned of the consequences for low-income earners. The Green Party and the Deutscher Mieterbund (German Tenants’ Association) also voiced concerns about social stability. More strikingly, disquiet has surfaced within the SPD itself. Critics note that the reform targets the party’s own core constituency particularly hard.
How Eligibility Works
Housing benefit is available to low-wage earners who do not receive other transfer payments such as Bürgergeld or student aid (BAföG). For 2026 the statutory minimum wage will be €13.90 gross per hour, but many people on modest incomes still qualify for Wohngeld as long as they meet the criteria.
The amount paid depends on three factors: total household income, household size, and the regional rent level (Mietenstufe). In an example provided by the ministry, a single pensioner with a gross pension of €1,300 and a cold rent of €335 in Mietenstufe I currently receives about €110 per month in housing benefit. For families with children, child benefit and the child supplement are not counted as income.
Asset thresholds remain: €60,000 for the first household member and €30,000 for each additional person. Private pension savings up to €1,500 per year of life are excluded, capped at €90,000. Certain allowances reduce the income counted toward the benefit, including for single parents, severely disabled people, and recipients of a Grundrente with at least 33 contribution years. Volunteer allowances of up to €3,000 per year are also ignored.
Work Requirement Upheld
A recent ruling by the Berlin Administrative Court underscores the "self-help principle" in housing-benefit law. The benefit can be denied if a person capable of work refuses reasonable employment without a valid reason. This applies even to part-time workers whose income falls short of their needs.
Uncertain Outlook for 2027
The most recent regular increase in Wohngeld took effect on January 1, 2025. The next scheduled adjustment would normally occur on January 1, 2027, but its fate is entirely unclear given the government’s savings mandate.
A government-appointed social-state commission is currently working on a concept to bundle various benefits. Its findings are expected by autumn 2026. Until then, uncertainty hangs over millions of households that rely on housing support.
