This is in a draft law by Federal Building Minister Klara Geywitz (SPD), which was presented to the AFP news agency on Friday. The current average contribution will increase from 180 euros per month to 370 euros.
Chancellor Olaf Scholz (SPD) announced the housing benefit reform to relieve low-income households at the end of July. It is now part of the traffic light government’s third relief package because of high energy prices. The ARD magazine “Fakt” first reported on the draft law on Friday.
The new law is intended to increase the number of households receiving housing benefit from 650,000 to two million. According to the draft law, the housing cost burden for people whose income is just at the limit for entitlement to housing benefit is more than 50 percent of the disposable income. The aim is now to reduce this value to 40 percent.
The regulation is scheduled to come into force on January 1, 2023. According to the draft law, the scope of the housing allowance will be increased by raising the general level of benefits in combination with the other reform elements.
As a result, numerous households could receive housing benefits that were not previously entitled. In addition, a provisional payment to speed up the payment and administrative simplifications are planned.
Geywitz recently announced that she wanted to work with the federal states to simplify the application process and to raise awareness of the housing benefit. Many people do not even know that they could have a legal right to this service.
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