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Housing benefits will be available to two million low-income households starting in 2023, up from 600,000 households so far. Housing benefit will usually increase by a factor of two under the new “Wohngeld Plus”. The federal government also ensures that people can afford rising heating costs by including a fixed component of heating costs.
The biggest housing benefit reform in German history will come into effect on January 1, 2023. This implies that the new “Wohngeld Plus” can be distributed to around two million households. Assistance for housing has been paid to about 600,000 households so far.
The reform made housing benefits available for the first time or again to approximately 1.4 million households.
This includes low-income households, which are primarily made up of families, single parents and the elderly. Households whose income is slightly above the basic security limit are paid a housing benefit as a subsidy.
Housing benefit is used to obtain suitable housing suitable for a family. As a result, people who rent or own a home and earn less money can receive Housing Benefit.
We are talking about approximately 600,000 households that would have received housing assistance in 2023 even if there had been no adjustment.
Additionally, 1.04 million households have incomes that currently exceed the housing benefit eligibility thresholds. You may receive housing benefit for the first time or again in 2023 as a result of the improvement.
In addition, 380,000 households are entitled to housing benefits. They no longer rely on social assistance or unemployment benefit II (Harzt 4 or Jobenter).
In 2023, the average monthly increase in housing allowance is expected to be around 190 euros. This has more than doubled the current housing allowance. Without the reform, it rises from an average of around 180 euros per month to around 370 euros per month.
The amount of the housing benefit is calculated according to the number of household members that is taken into account, the rent that is taken into account for the living space, or the burden in the case of owned residential real estate, and the total income of the tenant. household members to consider. The exact amount of housing benefit is checked and determined by the local housing benefit office.
The permanent heating cost component is intended to protect against rising energy prices, while the climate component is intended to bring costs under control for the first time, for example, during the renovation of energy-efficient buildings.
The price of new heating is EUR 2.00 per square meter. It is included in the calculation of housing benefit. On January 1, 2024, the amount of the portion will be checked for the first time with the regular adjustment of the housing allowance. Citizens now have the certainty that their heating costs are permanently covered.
Around 600,000 households receiving housing benefit will receive a second heating subsidy for the heating season from September to December 2022 to help quickly this year. In the summer of this year, they already received the first, one-time subsidy for heating.
You can apply for housing assistance at the housing benefit offices of the municipal, city, office or district administrations in your area. Application forms and detailed instructions are available there. The new regulations are expected to enter into force on January 1, 2023.
Half of the cost of housing benefit reform is borne by the federal government and the other half by the states.
Link to the basic housing allowance calculation calculator:
