Because: The federal government should pay for the cost of housing benefit expansion

Created: 04/10/2022 22:06

Franziska Giffey (SPD), Governing Mayor of Berlin, and Stephan Weil (SPD), Prime Minister of Lower Saxony.

© Bernd von Jutrczenka/dpa

According to Lower Saxony's Prime Minister Stephan Weil (SPD), the costs for the planned significant increase in housing benefit should be borne solely by the federal government.

So far, the federal government has not been willing to bear the costs alone, said Weil in a statement distributed on Tuesday evening after consultations with the federal and state governments on how to proceed in the energy crisis.

Berlin - "I very much regret that in view of the forthcoming tripling of the amounts to be paid out and the high burdens on the states." Lower Saxony has been the presidency state of the Prime Ministers' Conference (MPK) since October.

From January, the state rent subsidy is to increase by an average of 190 euros per month - it is also to be paid to 1.4 million more citizens.

So far, the housing allowance has been financed equally by the federal and state governments, but the states no longer want to participate.

Weil said that during the consultations there was the unavoidable problem that the design of the package of measures announced by the federal government had not yet been determined.

According to Weil, the federal government has promised to make the first concrete statements on financing issues at the Prime Ministers' Conference on October 21 in Hanover.

The federal government wants to protect consumers and companies from high energy prices due to the Ukraine war with a package of measures worth billions.

Gas and electricity prices should be capped.

There should be liquidity and equity support for companies.

Details are still open.

dpa