Merz is planning cuts in citizens' benefits: is there a housing shortage?

Merz is planning cuts in citizens' benefits: is there a housing shortage?

In the ARD “Summer Interview”, Chancellor Friedrich Merz (CDU) caused a stir with his statements about possible cuts in housing costs for recipients of citizens’ benefit. Merz says that a flat rate and reduced rates for housing costs would be conceivable. His statements raise questions and create tensions between benefit recipients and employees. Around 5.5 million people in Germany currently receive citizen's benefit, with the standard rate for single people being 563 euros, plus accommodation costs and heating.

The reactions are correspondingly violent. Verena Bentele, President of the VdK, describes Merz's announcement as unfounded and warns of catastrophic conditions for those affected. Anja Piel from the DGB also warns urgently about the threat of homelessness and calls for sustainable solutions for the housing market. Criticism is also voiced by Melanie Weber-Moritz, the President of the German Tenants' Association, who sees the proposed cuts as not a solution to the problems of citizens' benefit recipients. In addition, SPD parliamentary group deputy Dagmar Schmidt rejects the planned benefit cuts; after all, the apartment sizes for benefit recipients are already limited.

The assumption of costs by the job centers

As the employment agency.de explains, the job center covers the costs of accommodation and heating for those receiving citizens' benefit at an appropriate level. “Appropriate” is not just a phrase, but means that the rental costs and the size of the accommodation must not exceed certain guidelines. What happens if someone lives in an inadequate apartment? In such cases, the job center stipulates that costs must be reduced, for example by moving to cheaper accommodation or even by subletting.

Another important point is that the rental agreement for new accommodation may only be signed after coordination with the responsible job center. It is therefore advisable to seek advice from the experts in the benefits department in good time.

Current legal developments

A recent ruling has now strengthened the rights of citizens' benefit recipients. How buerger-geld.org reported, recipients now receive better protection against arbitrary decisions and job centers must meet stricter requirements. An example from the ruling makes this clear: If a tenant sublets part of his apartment and the subtenant moves out after three years, the office cannot simply reduce the payments without initiating another cost reduction process. Changes in circumstances must be clearly taken into account.

This jurisprudence approach also results in a clear request for the authorities: they must point out unreasonable rents. The request should not only be informative, but also a warning for those entitled to benefits.

Overall, there will be intensive discussions about a reform of citizens' money in the autumn, which could possibly also result in a renaming to “basic security”. In this context, Merz plans to increase rates in certain circumstances, while at the same time plans for savings in housing costs are under discussion. Expenditure on basic security in the draft budget for 2025 is expected to rise to a record level of 51.96 billion euros.