Your housing benefit: 381,000 households to lose eligibility, Bundesrat to decide on September 25
Federal Building Minister Verena Hubertz has defended the planned cuts to housing benefits while simultaneously signaling openness to improvements during the parliamentary process. The federal budget is under particularly significant pressure to consolidate, the minister said, noting that her ministry must also make savings and that changes to housing benefits were the only viable path to achieve this. "I know what this will mean for many people," Hubertz said.
Affected are low-income households that cannot cover their rent or the costs of owner-occupied property on their own. Around 1.2 million households receive housing benefits. According to the microsimulation upon which the draft law is based, approximately 381,000 of these households would lose their eligibility entirely. Another 143,000 or so would have to switch to basic social security. The federal government intends to reduce its share from 2.4 to 1.8 billion euros.
Specifically, the increase in housing benefits scheduled for January 1, 2027, is to be suspended, the permanent heating cost component is to be halved, and the calculation formula is to be changed. For single persons, the heating cost component will drop from 110.40 to 62.40 euros per month. The minimum threshold will rise from 10 to 15 euros, meaning small residual claims will be eliminated entirely. Notices already issued will remain valid until their expiration, generally twelve months, or 24 months in exceptional cases.
Nothing has been decided yet. The responsible specialist committees of the Bundesrat recommend rejecting the draft entirely, and the plenary session will vote on it on September 25, 2026. At the Conference of Building Ministers, the 16 state ministers spoke out in favor of maintaining housing benefits. The draft is designed as a law requiring the consent of the Bundesrat, meaning the states can stop it.
What you can do now: Check the expiration date on your current notice, as nothing will change for you until then. Expect a lower heating cost component for your next application and carefully check your income, tax-free allowances, household size, and rent tier. Those whose income is just above the basic social security threshold should inquire early at the housing benefit office or a social counseling center about which benefit is the right one for their individual case starting in 2027.