The German Tenants’ Association (Deutscher Mieterbund, DMB) has called on members of the Bundestag to reject the federal government’s planned cuts to housing allowance (Wohngeld). In a statement released on October 8, the association reported that the first reading of the bill was anticipated on Friday; the publication does not report on the outcome of the debate.
- The Mieterbund opposed the proposed changes to Wohngeld; this represents the organization’s official position.
- The draft bill provides for halving the heating cost component and a one-time suspension of the regular benefit adjustment.
- Based on government estimates cited by the DMB, projected budget savings total around 1.156 billion euros in 2027 and 1.486 billion euros in 2028.
- The association estimates that up to 500,000 households could lose Wohngeld eligibility; this figure represents an organizational projection.
Proposed Provisions of the Reform Bill
According to the Mieterbund, the reform proposal entails cutting the heating cost component (Heizkostenkomponente) of Wohngeld in half and instituting a one-time suspension of the regular payment adjustment. Based on federal government estimates cited by the organization, expected budgetary savings amount to approximately 1.156 billion euros in 2027 and 1.486 billion euros in 2028.
The October 8 publication announced the first reading of the draft bill in the Bundestag for Friday. The statement did not provide findings or outcomes from subsequent deliberations.
Deutscher Mieterbund Assessment
According to data cited by the Mieterbund, 93% of Wohngeld recipients are tenant households, with the organization highlighting pensioners, families with children, and single-person households in particular. The association projects that up to 500,000 households could lose entitlement to Wohngeld and subsequently become reliant on other social assistance programs.
The DMB also warns that anticipated savings may be partially offset by increased expenditures across other social safety net systems, federal states, and municipalities. According to the union’s summary, the Bundesrat supported administrative streamlining but voiced criticism over suspending the Wohngeld adjustment and reducing the heating component; the states’ demands cited by the Mieterbund include full municipal compensation for added administrative burdens.