New housing allowance in Germany. Life in Germany. Starting January 1, 2025, Germany will offer more financial support through housing allowances for low-income earners and pensioners under new rules. These changes aim to ensure that residents do not have to choose between paying for heating and buying food. The new rules will benefit millions of people in Germany, including both workers and pensioners.
New housing allowance in Germany from January 1, 2025
A big increase in housing support, known as Wohngeld, is planned for January 2025. This means that people with low incomes and retirees with small pensions will get more help each month.
Read also: German government increases monthly Wohngeld subsidy by €190 on average
Minister of Construction Klara Geywitz (SPD) recently announced that starting January 1, 2025, the housing support will go up by an average of 15 percent. This is to make sure that people don’t have to choose between paying for heat or food due to high housing costs. The last increase happened on January 1, 2023, and since then, the cost of living has gone up.
Housing benefit 2025: Examples of possible amounts
It’s not possible to say exactly how much the housing allowance will go up because it depends on where you live, how many people are in your household, and your income. For example, a family with two kids in Munich will need different support compared to a family living in a small village in Ostfriesland.
However, you can get an idea of the increase based on examples. The final amount of the allowance will be decided by the relevant authority.
Read also: Germany’s new citizenship law: What you need to know about dual citizenship
Example 1: Household with two adults
Tobi and Hannah live in Pfaffenhofen an der Ilm, Bavaria. Hannah works full-time and earns 2,000 euros a month, while Tobi has a part-time job and makes 520 euros a month. They pay 950 euros in rent for their two-room apartment and currently receive 118 euros in housing benefit. Starting in 2025, they can expect their housing benefit to increase by 18 euros, bringing it to about 136 euros.
People who already receive Housing Benefit don’t need to do anything. The increase will be applied automatically and calculated by the relevant office. This benefit also covers heating costs. The upcoming rise in Housing Benefit from January 2025 will help low-income earners and pensioners manage the increasing cost of living and ensure they have decent housing.