Rent: Minister of Construction Geywitz announces housing benefit reform

Building Minister Klara Geywitz wants to introduce a reform of the housing benefit for people with low incomes at the turn of the year.

Rent: Minister of Construction Geywitz announces housing benefit reform

Building Minister Klara Geywitz wants to introduce a reform of the housing benefit for people with low incomes at the turn of the year.

"I want more people to receive housing benefit. We will significantly expand the circle of those entitled to claim," said the SPD politician on Monday to the editorial network Germany (RND). Geywitz announced in the interview that the target for the reform is January 1, 2023.

In their coalition agreement, the parties in the traffic light government had stipulated that they wanted to strengthen housing allowances. Chancellor Olaf Scholz announced last week that the group of housing benefit recipients would be expanded at the turn of the year.

The housing benefit is a rent subsidy from the state for people who earn very little but otherwise do not receive any social benefits that already take housing costs into account, such as Hartz IV.

Energy prices are also weighing on housing companies. Geywitz fears that some housing companies will have payment difficulties in the future because of this. "Not all, but some, especially smaller and regional housing companies, can now run into liquidity problems because they have to pay in advance for the high energy costs," she said. When asked whether the companies affected should therefore receive state support, Geywitz said: "We're talking about that right now."

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