Germany's new Grundsicherung limits housing subsidies

Effective 1 July 2026 Germany will replace the Bürgergeld with a re‑styled Grundsicherung for job‑seekers. Under the new law the adequacy of accommodation costs is checked from day one and the amount reimbursed is capped at 1.5 times the local “reasonable” rent level, a ceiling that also applies after the first year. Municipalities may set maximum rent per square metre, aiming to curb excessive rents in small apartments. Recipients whose rent exceeds these limits will receive a written notice from the jobcentre to reduce costs.

The reform has drawn criticism from the Nürnberger Zeitung, which argues that the savings drive should not replace basic support and calls for a stronger focus on measures that facilitate a transition into employment rather than cutting benefits.