# German social welfare reform controversy > Live situation record from CLSTR: https://clstr.news/situations/german-social-welfare-reform-controversy > Updated: 2026-08-21T20:09:55.000Z. Sources: 3. Developments: 2. The German political party Die Linke has raised alarms regarding proposed government cuts to social welfare programs. Initial estimates from party board member Ulrich Schneider suggested that reforms could affect approximately eight million people. These proposed changes include reductions in housing allowances (Wohngeld), restrictions on care services (Pflege), a decrease in the duration of parental allowance (Elterngeld), and the removal of child supplements. As the debate progressed, Die Linke chair Ines Schwerdtner specifically criticized the Merz government over planned housing allowance cuts. Following statements from Housing Minister Verena Hubertz regarding anticipated budget savings, Schwerdtner warned that one-third of current eligible recipients could lose access to benefits by 2027. She estimated that over 2.5 million people across 1.2 million households would be impacted, potentially increasing poverty and homelessness. In response, the party called for wealth taxes and the expropriation of large rental corporations to address economic pressures. ## Timeline ### 2026-08-21: Die Linke criticizes government over planned housing allowance cuts Die Linke leader Ines Schwerdtner has criticized the Merz government for planned housing allowance cuts that could affect 2.5 million people and increase the risk of homelessness by 2027. 3 sources. https://clstr.news/cluster/die-linke-criticizes-government-over-planned-housing-allowance-cuts ### 2026-08-10: Die Linke claims social benefit cuts will affect eight million people Die Linke estimates that proposed German government cuts to social benefits, including housing, care, and parental allowances, could impact approximately eight million people. 7 sources. https://clstr.news/cluster/die-linke-claims-social-benefit-cuts-will-affect-eight-million-people --- Cite as: German social welfare reform controversy. CLSTR, https://clstr.news/situations/german-social-welfare-reform-controversy