FAQ
Status: 13.10.2022 7:12 a.m
There should be more state aid for people with low incomes. The housing allowance will be significantly expanded, and there will also be a subsidy for heating. Who is entitled, how can you get the money – and where could there be problems?
Why is?
With a reform of the housing allowance, the traffic light coalition wants to help more people on low incomes to cope with the sharp rise in housing and energy costs. More than three times as many households should be able to receive the housing allowance from January 2023, which will also more than double on average. Today the Bundestag is advising. The Bundesrat still has to approve the law. But some questions have not yet been clarified, such as who will pay for the whole thing. 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. The federal states or municipalities are responsible for applications and payments.
How many people receive housing benefit?
Around 1.3 million people in around 600,000 households are currently receiving housing benefits. About half of them are pensioners and another 40 percent are family households. Mecklenburg-Western Pomerania was at the top with 2.7 percent housing benefit households, in Bavaria the proportion was lowest at 0.9 percent. The federal and state governments, which each finance half of the housing allowance, spent a total of around 1.3 billion euros in 2020. By raising the income limit, the number of recipient households is to be increased to two million.
Who is entitled to housing benefit?
Anyone who goes to work but does not have sufficient income to pay for housing can apply for housing benefit. Pensioners and residents of nursing homes can also apply for housing benefit – as can students who are not entitled to student loans or receive this as a full loan, as well as recipients of unemployment benefit I and short-time work benefits. 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.
From what income is there housing benefit?
Basically, those who earn little and have high living expenses, for example because they live in an expensive city, receive the greatest support. The higher the income and the lower the housing costs, the lower the 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. Factors in the calculation are income, rent, household size and place of residence. Information and applications can be obtained from the housing allowance authority of the municipal, city, office or district administration.
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 Construction Minister Klara 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.
Who cannot receive housing benefit despite low income?
Anyone who already receives other social benefits does not receive housing benefit. These include, for example, future recipients of citizenship benefit, as well as everyone who receives basic security in old age and in the event of reduced earning capacity or basic benefits under the Asylum Seekers Act or training support aid – i.e. student student loans, student loans or vocational training aid. Accommodation costs are already included in all of these social benefits.
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. 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.
How much does it all cost – and who pays?
The Ministry of Construction expects costs of more than three billion euros for the coming year. 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. The dispute over money has not yet been resolved and should come up again in November at the next federal-state meeting.
Where else could there be problems?
With the bureaucracy. Countries like Berlin doubt that they will be able to pay out the new housing benefit in time for January 1st. They are expecting many new applications – and they warn that the processing could take until February or even longer. The DGB warns that it will not work without more staff in the housing benefit offices. The Ministry of Construction also expects long waiting times.
How are heating costs taken into account?
For the first time, the warm ancillary costs are subsidized in the housing allowance. The new heating cost component is designed as a flat rate per square meter of living space and graded according to the size of the household. On average, it leads to 1.20 euros per square meter more housing benefit. In order to help this year, recipients of housing benefit for the heating period from September to December 2022 should receive a one-time second heating cost subsidy. If you live alone, you get 415 euros, for a two-person household it is 540 euros and for each additional person an additional 100 euros. Pupils, trainees and students receive 345 euros.