Wohngeld cuts expose the limits of Germany's housing policy

Germany's federal housing minister has confirmed plans to cut Wohngeld, the state benefit that tops up rent payments for lower-income households, by €2bn a year. Verena Hubertz has submitted a draft bill for inter-ministerial consultation that would reduce annual spending on the benefit from around €5bn to roughly €3bn, with the federal government and the states each finding €1bn in savings.

The practical effect, by Hubertz's own account, is stark: a third of the 1.2 million households currently receiving Wohngeld will lose their entitlement altogether. "The cuts to housing benefit will, unfortunately, affect all current recipients," she said. "Some of these are people who, due to their income, have so far only just been eligible to apply. It is very bitter, but there is no other way."