Good news for the approximately 4.5 million housing benefit recipients! The traffic light coalition wants to significantly increase state subsidies. From January onwards they are expected to rise by an average of 15 percent.
This corresponds to an average of around 30 euros more per month, said Construction Minister Klara Geywitz (48, SPD) on Tuesday.
The reason for the increase: the price shock. The increase in housing benefit will offset the increase in rents and prices, says Geywitz.
Additional costs for the taxpayer: around 60 million euros per month. That corresponds to around 720 million euros per year.
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Housing benefit is a social benefit for low-income earners who cannot pay their rent or mortgage on their own. One in two of the approximately two million households affected are pensioners. The benefit is adjusted every two years.
Unlike citizen’s allowance, there is no standardized amount for housing benefit. Instead, the subsidy depends on the size of the household, among other things. Currently, many households receive 350 euros or more per month.
The housing benefit hammer is already the second major increase of the traffic light government. On January 1, 2023, Geywitz implemented a major reform. At that time, among other things, it was decided to pay housing benefit to significantly more households.
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