Two million households are to receive housing benefit – are you part of it?

Created: 09/29/2022, 13:52

By: Lisa Mayerhofer

So that no one sits in a cold apartment in winter, the state is increasing its aid.

The problem: Many people do not know that they can benefit from housing benefit.

Berlin – The high energy costs are putting more and more households in Germany under pressure.

That is why the housing benefit, which helps people with low incomes to pay the rent, is now to be increased.

The group of beneficiaries is also being expanded.

“Many people in our country are afraid of the cold winter.

They don't know whether they can pay for gas and electricity when the housing costs already make up a large part of their household income," said Building Minister Klara Geywitz (SPD) on Wednesday, explaining the reform initiated by the Federal Cabinet.

But many of those affected do not even know that they could get help from the state at all.

An overview.

What exactly is housing benefit?

It's like a government subsidy to rent for people on low incomes.

Even those who own a condominium or a house and at the same time have little money can get support for the repayment of their loans.

However, this only applies if you do not receive any other transfer payments that already take housing costs into account, such as unemployment benefit II, social benefit or student loans.

The federal states or municipalities are responsible for applications and payments.

Rent subsidy: how much money can you get?

That depends on how high the rent and income are and where exactly you live.

However, the federal government wants to significantly increase the housing benefit in general, by an average of 190 euros per month.

The previous housing benefit households would thus receive around 370 euros per month from January instead of an average of 177 euros.

Significantly more households than before should be able to apply for housing benefit from January 1, 2023.

(Iconic image) © Sascha Steinach/Imago

The German Economic Institute (IW) has presented sample calculations.

Accordingly, a pensioner in Berlin with a monthly pension of 1259 euros gross and monthly rent of 500 euros would receive 252 euros rent subsidy - 178 euros more than before.

For a family of four in Munich with an income of 2386 euros (gross) and rent of 1000 euros, the housing benefit increases from 481 to 804 euros.

Who can get housing benefit?

Whether you are entitled to housing benefit depends on a complicated calculation - there is no easy-to-remember income threshold.

This is probably one reason why not all households that are entitled to it have applied for housing benefit.

Geywitz wants to change that: "I would like to ask everyone who has little income and high housing costs: Check whether you are entitled to housing benefit.

It's your right," she said.

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Factors in the calculation are income, rent, household size and place of residence.

You can use the ministry’s housing allowance calculator to calculate whether you could get housing allowance online.

So far around 600,000 households in Germany have received housing benefit.

The reform is expected to add 1.4 million more households.

In total, there will be 4.5 million people in Germany, said Geywitz.

Among them are many single parents, pensioners, but also residents of old people's and nursing homes.

In future, employees who earn minimum wage should also receive housing benefit.

How much does that cost the state?

The Ministry of Construction expects costs of more than three billion euros for the coming year.

According to Geywitz, it is planned that the federal and state governments will each take on about half, because they are already sharing the cost of housing benefit.

The federal states, on the other hand, see the federal government as solely responsible and do not want to pay.

Where else could there be problems?

Countries like Berlin doubt that they will be able to pay out the new housing benefit in time for January 1st.

They expect many new applications – and the processing could drag on into February or even longer, they warn.

For Stefan Körzell from the board of the German Trade Union Confederation (DGB) it is clear: "Without more staff in the housing benefit offices, it will not work to process additional applications quickly in the future." Geywitz also expects long waiting times.

"It would be an illusion to say: We have 1.5 million applicants or even many more - and that's no problem at all," she told

.

Housing companies and tenant representatives consider the reform to be too fragmented.

"We now need a big step from the government to effectively cushion the energy price explosion," demanded the housing association GdW.

That could only be a gas price cap.

The tenants' association called for additional improvements in tenancy law to protect against rising rents.

What else is being done because of the high heating costs?

For housing benefit recipients and for many students and trainees, there should be another subsidy for heating costs in the short term.

For students with Bafög and trainees with training and vocational training grants, the flat rate is 345 euros.

For everyone else, the subsidy should be based on the size of the household: If you live alone, you get 415 euros, for two people there are 540 euros – and for each additional roommate another 100 euros.