Anger over housing benefit cuts: “Absolutely unacceptable and anti-social”

The German Federation of Trade Unions (DGB) has harsh words for the planned savings in housing benefit amounting to 2 billion euros. These are “absolutely unacceptable and anti-social”. Seven of eight invited representatives from trade unions, tenant and property representatives, municipalities and social associations spoke out decisively against the planned housing benefit reform at a hearing in the Bundestag.

The federal government is not only losing its own credibility with regard to its self-imposed goal of ending homelessness by 2030, the reform is even bordering on a broken promise in this regard, says Martin Künkler from the DGB. He receives support from the BAG Wohnungslosenhilfe e.V: “Housing benefit is the decisive preventative measure against homelessness!” explains deputy managing director Joachim Krauß. Removal would lead to a devastating situation for those who rely on the benefit - pensioners, families with children and low-income people living alone.

Because of the loss of housing benefit, some people would slip into basic security, which would cause new government spending. Provided that the applicants overcome the hurdles to receiving benefits and do not end up homeless beforehand.

Only the deputy of the German District Council and the Association of Cities and Municipalities, Markus Mempel, welcomes the reform plans. In view of the touted relief of the overall system, he sees the additional expenditure in municipal basic security systems as justifiable. Anyone who loses housing benefit would still be covered by the livelihood system and would therefore not be considered poor, said Mempel. In addition, in his opinion, it is more of a “withdrawal of benefits that were once expanded” after the housing benefit reform in 2022 than a cut.

At that time, the SPD introduced the heating cost component into housing benefit for the first time and significantly expanded the circle of recipients. The reform was celebrated within the party as a historic victory.

The current draft reform, on the other hand, is causing a lot of dissatisfaction and discussion, including within the government coalition. The budget for next year will be discussed in the Budget Committee on Thursday. In an amendment to the government draft, the Greens are calling for the budgeted funds to be increased by around 900 million euros to 2.73 billion euros and thus to reverse the planned savings. In addition, the flat rate for heating costs should be increased by 20 percent due to high energy costs.

In view of all the people who would fall into basic security as a result of the reform, the Green Lisa Paus, chairwoman of the budget committee, told the taz: “The cuts are not only socially unfair, but also budgetary nonsense.” When it comes to parental allowance, the government has realized that it has made a mistake and has reversed planned cuts. This is also needed for housing benefit.

Housing benefit is a state subsidy for low-income people who do not receive basic income. In order to save the 2 billion euros provided for in the reform draft, the housing benefit formula should be changed, the heating cost component should be halved and the adjustment to inflation and rent price developments should be suspended.

It is not possible to give a general answer as to which households would be affected by the cuts, as the amount of the subsidy depends on the level of income, housing costs and the number of household members. However, around a third of current households will no longer be able to receive housing benefit in the future. Last year around 1.3 million households received housing benefit, compared to 1.2 million the year before.