The Federal Cabinet wants to increase the housing allowance from January 2021 by ten percent. This is to prevent people with low incomes from having to suffer excessively from the costs of more climate protection.
In the Federal Cabinet, a bill was passed to relieve the heating costs in the housing allowance. The Federal Government estimates that a household that receives housing benefit will receive an average of around 15 euros more per month.
The draft has yet to be approved by the Bundestag and the Bundesrat. On 9th October the Federal Government decided to start pricing for the emission of climate-damaging carbon dioxide for traffic and heat from 2021 onwards.
Number of recipients should increase
The Greens had pleaded for a general energy bill for all households, not only for the recipients of housing allowance. Housing policy spokesman for its parliamentary group, Chris Kühn, said: "The housing subsidy is not suitable for panic attempts by the coalition to subsequently simulate any more social justice in the CO2 price."
more on the subject
Only last week, the Federal Council had decided on a housing increase, which will apply from next January. In addition, the housing allowance is adjusted every two years to the development of rent and income.
According to a prognosis of the Federal Government, the number of those receiving this aid will increase. The government estimates that in 2021 around 665,000 households will receive housing allowance.
