The Deutsche Mieterbund (German Tenants’ Association) has issued warnings regarding potential cuts to the housing allowance subsidy. Melanie Weber-Moritz, the association’s president, stated that any resulting reductions must not cause a drop in benefits or negatively affect eligible recipients. She stressed that the housing allowance must remain a standalone subsidy and remain linked to actual living costs.
These warnings stem from the federal government’s efforts, spearheaded by Finance Minister Lars Klingbeil (SPD), to close budget deficits. According to reports from the Federal Ministry of Housing, the ministry plans to reduce its expenditure by one billion euros. In response to press inquiries, a spokesperson for the ministry (led by Verena Hubertz, SPD) affirmed that they would meet the “savings specifications through a restructuring of the housing allowance”.
However, politicians from the left opposition strongly criticized these plans. Sahra Mirow, the spokesperson for the Left Party group on social housing, called the proposed cuts a disastrous sign for housing policy. She argued that reducing funds for the financially vulnerable to close budget gaps is socially unjust and treats recurring homelessness as an acceptable cost.
Another concern was raised by the Green Party’s Mayra Vriesema, who advocated for stronger rent regulation. The deputy argued that if rents decrease, fewer people would need housing allowances. Instead, she criticized the constant changes in tenancy law, implying that those relying on housing benefits would bear the financial burden.
Meanwhile, Ina Scharrenbach, the housing minister for North Rhine-Westphalia (CDU), demanded comprehensive reform rather than minor adjustments. Speaking to newspapers, she argued that the housing allowance needed a proper, comprehensive rewrite that was simpler, more precise, and developed jointly with the federal states. On a shorter-term note, she highlighted the immediate need for the federal government to eliminate a mandatory formal requirement from the federal law that currently necessitates printing, enclosing, and mailing every benefit notice with postage, a process that alone costs 2.2 million euros in North Rhine-Westphalia.