Last year, the German government passed a reform stipulating that housing benefit rates should be adjusted every two years, in line with rent and income developments. This will happen for the first time at the beginning of 2022.

Housing benefit to rise automatically for the first time

On January 1, 2022, Germany’s housing benefit will be automatically adjusted to bring it in line with average rents and salaries. The change will make sure that, after the cost of housing is deducted, recipients’ income will retain the same purchasing power as it did two years ago. 

In total, the change is expected to benefit around 640.000 households, of whom 30.000 will be entitled to housing benefits for the first time. “These are mainly retirees and families,” said government spokesperson Steffen Seibert. Current recipients will see their benefit payments increase by an average of 13 euros per month from January 1, 2022. 

Germany wants to keep housing benefit in line with real incomes

The reform was passed last year to ensure that housing benefit rates are reflective of developments in real rents and incomes. By regularly adjusting the housing benefit every two years, it is hoped that more low-income households, that might otherwise have lost their entitlement as their income rose with inflation, can continue to receive the benefit. 

This will ensure that fewer people have to switch to unemployment benefit II or social assistance to secure their livelihood.