Germany implements reforms to housing allowances and pension supplements

The German government is implementing significant changes to social benefits, specifically affecting housing allowances (Wohngeld) and pension supplements (Grundrente).

Regarding housing assistance, the government plans to halve the heating cost component of the Wohngeld calculation starting January 1, 2027. This move aims to consolidate the federal budget following changes in energy prices. Projections suggest that by 2029, approximately one million households could receive reduced levels of support, and around 238,000 households might lose their eligibility entirely.

In the pension sector, the Federal Social Court has upheld rules regarding the Grundrente (basic pension supplement). For married couples, the supplement may be reduced if their combined monthly income exceeds 2,327 euros. Additionally, new seizure protection limits for pensioners with debts will take effect on July 1, 2026, allowing individuals to keep a monthly net amount of up to 1,589.99 euros to protect against creditors.