The German government is introducing a controversial new measure aimed at curbing perceived abuse of housing benefits and addressing inflated rental costs for citizens receiving basic income support (“Bürgergeld”). According to a spokesperson for the Federal Ministry of Labour and Social Affairs, municipalities will now be empowered to set a maximum price per square meter for rental accommodations occupied by Bürgergeld recipients.
This move, championed by Federal Minister for Labour and Social Affairs Bärbel Bas (SPD), seeks to tackle the practice of landlords exploiting the benefits system through the provision of dilapidated, overcrowded properties – often referred to as “Schrottimmobilien” – and charging exorbitant per-square-meter rates. Currently, payments for rent and heating are capped by standardized limits based on household size and overall living space. However, the ministry argues that these standardized caps are inadequate in addressing the artificially high per-square-meter costs seen in these substandard dwellings, where multiple households can be crammed into limited space.
The introduction of the “square meter cap” has already drawn criticism from housing advocacy groups who fear it will exacerbate the existing housing shortage and further marginalize vulnerable populations. Critics contend that the policy shifts responsibility for addressing systemic issues of insufficient affordable housing onto local authorities and risks pushing Bürgergeld recipients into even less desirable, potentially unsafe, living situations.
Furthermore, the vague wording regarding the application of the cap-requiring municipalities to balance preventing “extreme cases” with considering “regional price levels”-raises concerns regarding inconsistent implementation and potential for discriminatory practices. Housing experts warn that overly aggressive caps could discourage landlords from offering any accommodation to Bürgergeld recipients, effectively creating a de facto exclusion from the rental market.
The government maintains that the measure is intended as a targeted response to prevent abuse and ensure fairness within the social welfare system. However, the policy’s long-term impact remains uncertain and its success will largely depend on the willingness of municipalities to adopt it responsibly and consider the broader societal implications. The potential for unintended consequences and the risk of further stigmatizing a group already facing significant challenges are significant concerns that will likely escalate as the policy is implemented.