Germany Bundesrat proposes stricter housing allowance rules

The German Bundesrat is proposing reforms to the housing allowance (Wohngeld) system to prevent misuse. Under the proposed changes, households could lose their eligibility if a member is deemed capable of increasing their income through new or expanded employment.

The reform aims to change the legal wording from “as far as” to “if” regarding abusive claims. This shift would allow authorities to reject entire applications if they determine that a household is not making reasonable efforts to increase income, rather than simply calculating benefits based on assumed (fictitious) income. Social law expert Dr. Utz Anhalt warns that this stricter approach could lead to the cancellation of benefits for a large number of households.