Planned reform: Hamburg's center-left coalition urges Berlin to rethink housing benefit changes

Hamburg's governing Social Democrats and Greens are asking the federal government to rethink planned changes to Germany's housing benefit, supporting faster procedures but opposing cuts that would increase pressure on tenants.

A joint motion says the city backs sensible simplifications and quicker decisions. It also calls for social-policy improvements, including abandoning the planned halving of the heating-cost component and cushioning the effect of changes to the housing-benefit formula on single parents. Hamburg's parliament will decide on the motion on Sept. 16.

At the end of 2025, 26,970 Hamburg households received housing support averaging 318 euros a month. The benefit covered 49% of an average eligible rent of 645 euros. Without it, those households would have spent an average of 41% of their income on rent.

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For us in Hamburg it is clear: The federal government must rethink the planned reform.

The coalition also wants access to housing benefit simplified. It proposes examining whether applicants could automatically receive information about potentially excessive rents and available support programs. SPD parliamentary leader Dirk Kienscherf said the benefit protects single parents and older people from excessive housing costs. "For us in Hamburg it is clear: The federal government must rethink the planned reform," he said.

Green housing expert Leon Alam warned that a planned downgrade of Hamburg from rent category VI to V would create serious problems for many residents. "If heating becomes more expensive, housing benefit must also increase, and not be halved as the federal government plans," he said.

The federal cabinet has approved a draft by Construction Minister Verena Hubertz that aims to save at least 1.5 billion euros in 2027 and 2 billion euros a year from 2028. The number of recipients and the size of payments would both fall.

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If heating becomes more expensive, housing benefit must also increase, and not be halved as the federal government plans.