Housing benefits in Germany to increase significantly from 2025

Every two years, the housing benefit in Germany is automatically adjusted to reflect developments in prices and rents. The next increase will take place on January 1, 2025, and see Wohngeld go up by an average of 15 percent. 

Housing benefit (Wohngeld) to go up by 15 percent in 2025

The federal cabinet has approved a regulation for the housing benefit to increase significantly at the turn of the year, after 2024 saw no changes. From January 1, 2025, the approximately 1,9 million people in Germany who receive the social security benefit will see payments rise by an average of 15 percent, equating to about 30 euros extra per month. 

The law provides for the housing benefit to be adjusted every two years to reflect changes in the cost of living. "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," said Federal Construction Minister Klara Geywitz, Focus reports. 

The exact increase will be determined, among other things, by the number of people in your household. On average, housing benefit amounts to around 370 euros per month - from 2025, this will rise to 400 euros. The income thresholds - which determine who is eligible for the benefit - will also be increased, and so the Federal Construction Ministry expects an additional 1,9 million households will be entitled to the benefit from next year. The Federal Council (Bundesrat) still needs to approve the increase. 

What is the housing benefit in Germany?

Housing benefit is designed to relieve people who would otherwise have to apply for Bürgergeld to help cover the cost of their housing. It is given either as a rent subsidy for those in rental accommodation, or a burden subsidy for those who own their own homes. 

The Ministry of Construction particularly recommends that pensioners with low pensions, low-income working families, low-paid workers, students who are not eligible for BAföG, and care home residents, apply for the benefit if they have a low income. 

Wohngeld has no fixed amount; instead, the responsible authority calculates the benefit for each application, based on factors like the number of people in the household, their collective income, and the rent.