# Germany long-term care funding reforms

> Live situation record from CLSTR: https://clstr.news/situations/germany-long-term-care-funding-reforms
> Updated: 2026-07-31T02:49:38.000Z. Sources: 17. Developments: 3.

Germany’s 2023‑2026 long‑term care reform programme continues to reshape financing for home‑care recipients. The unified relief budget introduced in July 2026 provides €3,539 per eligible person annually for preventive and short‑term nursing care and funds the Verhinderungspflege and Kurzzeit‑care allowances. A new €450 monthly subsidy for care‑grade 1‑5 residents in special communal housing began on 1 January 2026, and Pflegegrad 4 beneficiaries receive a half‑rate Verhinderungspflege payment of €400 per month. Earlier steps included a 5 % Pflegegeld increase in 2024, a further 4.5 % rise for Pflegegrad 2 in 2025, and a court‑ordered €18,524.50 assistance payment for a disabled adult.

In July 2026 the Federal Ministry of Health announced that the monthly Pflegegeld for Pflegegrad 2 will stay at €347 in 2026, while the €131 Entlastungsbetrag for Pflegegrad 1 will be discontinued from January 2027, affecting roughly 27,200 recipients in Brandenburg.

A broader welfare reform package reported at the end of July 2026 confirms the withdrawal of the €131 relief payment and adds that the assessment of care level 3 will no longer be based on time spent caring. Housing‑benefit (Wohngeld) rules were clarified, removing a 60‑square‑metre ceiling for two‑person households and introducing asset limits. Parallel pension reforms eliminated the additional‑earnings ceiling for retirees and plan a retroactive top‑up in 2027, while health‑sector changes include a cap on psychotherapy sessions. Together, these measures aim to curb public spending while shifting more cost to individuals, extending the care‑reform agenda toward housing, pensions and health services.

## Claims

- A monthly subsidy of €450 will be paid to care recipients in special communal housing from 1 January 2026. (single source)
- The €450 subsidy equals €5 400 per year per recipient. (single source)
- Eligibility for the €450 subsidy requires a contract under § 92c SGB XI for the communal living form. (single source)
- The Entlastungsbudget for short‑term and preventive care is set at €3,539 per year and will increase on 1 January 2028. (single source)
- In January 2025 all care‑insurance benefits rose by 4.5 %. (single source)
- The 2025 adjustment increased Kurzzeit‑care from €1,774 to €1,854 per year. (single source)
- The 2025 adjustment increased Verhinderungspflege from €1,612 to €1,685 per year. (single source)
- For Pflegegrad 4, Verhinderungspflege pays half the regular care allowance: €400 per month, €100 per week, €800 total for eight weeks. (single source)
- The monthly care allowance for Pflegegrad 2 will be €347 in 2026. (single source)
- The care allowance for Pflegegrad 2 was increased by 5 % in 2024 and by 4.5 % in 2025. (single source)
- Doctors can issue a transport prescription (Transportschein) for Pflegegrad 2 patients who need medical transport. (single source)
- Transport costs are covered by the health insurance, with a co‑payment of €5‑10 per ride unless the patient is exempt. (single source)

## Timeline

### 2026-07-31: Germany's Welfare Reforms Impact Care, Housing and Pensions

Germany reforms care, housing and pension benefits: care‑level time criteria dropped, Wohngeld limits clarified, pension earnings cap removed with retroactive top‑up, and psychotherapy funding capped, while a 1

11 sources. https://clstr.news/cluster/germany-to-raise-shortterm-care-budget-in-2028-amid-soaring-homecare-costs

### 2026-07-24: Germany's Care Funding Reforms Impact Millions of Seniors

Germany updates care funding, adding substitution‑care payments and a budget shift that boosts support for millions, while Austria reports a rise to over 508 000 Pflegegeld recipients with higher payouts.

10 sources. https://clstr.news/cluster/germanys-pflegekasse-provides-home-care-allowance-to-residents

### 2026-07-03: Germany raises relief budget for preventive and short‑term nursing care

Germany’s care insurance now allocates a €3,539 annual budget for preventive and short‑term nursing care, with an inflation‑linked increase set for 2028.

3 sources. https://clstr.news/cluster/germany-raises-nursing-home-fees-and-shortterm-care-budget

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Cite as: Germany long-term care funding reforms. CLSTR, https://clstr.news/situations/germany-long-term-care-funding-reforms