Like prices, housing costs have also risen significantly in recent years. Those who earn little will now receive an average of 30 euros more in support.
On January 1, housing benefit is set to increase by an average of 30 euros. The Federal Cabinet has approved the corresponding regulation, as the Ministry of Construction in Berlin announced. It still requires the approval of the Federal Council.
According to the law, the amount of the monthly rent subsidy for low-income citizens is reviewed every two years to determine whether it needs to be adjusted to reflect price and rent trends. The ministry had already announced the expected average amount of the increase in July.
Federal Construction Minister Klara Geywitz (SPD) now explained: “People today spend significantly more money on rent, energy and everyday goods. In order to maintain the relief effect in the long term, we are increasing the monthly housing benefit by an average of 15 percent or 30 euros on January 1, 2025.”
The last reform took place in 2023. At that time, the circle of those entitled to it was also significantly expanded. The aim of the housing benefit is to relieve employees and pensioners with little money so that they do not have to apply for citizen’s allowance or basic security because of high rents. The amount of the housing benefit depends on the number of household members, income and rent. According to previous information, the ministry expects that around 1.9 million households nationwide will be able to receive housing benefit next year.
Source: Stern
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