Hamburg’s SPD Challenges Federal Housing Benefit Reform: Thousands of Households at Risk
Hamburg, August 16 – Dirk Kienscherf, parliamentary group leader of the SPD in Hamburg, is taking a firm stance against his own party at the federal level. He has labeled the proposed housing benefit reform as a ‘socially and housing-politically wrong decision.’ The Hamburg SPD is determined to halt these plans, which could significantly impact thousands of households in the city. Kienscherf’s criticism is directed even at the SPD-led Federal Ministry of Construction, stating, ‘As the Hamburg SPD, it doesn’t matter to me whether it’s an SPD-led ministry or another minister.’ Hamburg, alongside other federal states, aims to send a clear signal to the federal government: ‘We believe this is wrong.’
Approximately 9,000 Households Could Lose Housing Benefits
Dirk Kienscherf is committed to preventing the reform in its current form. Currently, nearly 27,000 Hamburg households receive housing benefits, averaging 318 euros per month. Housing benefit is a state subsidy for individuals whose income is generally sufficient for living but require assistance with housing costs. The German Tenants’ Association estimates that the reform could result in approximately 9,000 Hamburg households completely losing their entitlement. Others might have to manage with less money. Nationwide, around 500,000 households could be excluded from housing benefit payments.
Federal Government’s Proposed Changes to Housing Benefits
The federal government intends to make substantial savings on housing benefits, aiming for around 1.5 billion euros in 2027 and two billion euros annually from 2028. To achieve this, housing benefits will no longer be regularly adjusted to inflation and rent developments. The heating cost component is also set to be halved, and the calculation formula will be altered.
For Hamburg, an additional change is planned: the city’s rent level in the housing benefit calculation is to be downgraded from level VI to level V. The rent level determines the maximum amount of rent considered in the housing benefit calculation. For Hamburg households, this upper limit would decrease.
Example: 38 Euros Less in Housing Benefit per Month
A sample calculation for a family of four with a monthly income of 2,800 euros and a rent of approximately 1,100 euros illustrates the potential impact. In rent level VI, a maximum of 1,035 euros in rent can currently be considered in the calculation. In rent level V, this would drop to only 946 euros – a reduction of 89 euros. According to the housing benefit formula, this family would then receive about 190 euros instead of approximately 228 euros in housing benefit per month. This amounts to about 38 euros less, or more than 450 euros annually. Crucially, the family’s actual rent remains unchanged by the downgrade.
Tenants’ Association Warns of Consequences for Hamburg Residents
The Tenants’ Association of Hamburg sharply criticizes the planned cuts. They could pose a significant problem, especially for individuals with limited financial leeway. ‘People are fundamentally afraid of becoming homeless if they can no longer pay their rent,’ says spokeswoman Marielle Eifler. According to Eifler, pensioners and families with children would be particularly affected. Affordable alternatives are scarce in Hamburg, so the association is trying to exert political pressure. Affected individuals can use a sample letter to contact Hamburg’s Bundestag members, urging them not to support the reform in its current form. The Tenants’ Association particularly criticizes the proposed reduction in recognized maximum rent amounts in Hamburg, despite the city’s persistently high rent levels.
CDU Considers Savings Fundamentally Correct
Unlike the SPD, Hamburg’s CDU does not fundamentally reject savings in housing benefits. ‘We have no other choice,’ says Andreas Grutzeck, the CDU’s social policy spokesman, referencing the federal budget situation. At the same time, he admits that cuts in housing benefits disproportionately affect people with little financial flexibility. ‘Even five or ten euros is a lot of money per month for many people,’ Grutzeck stated. Therefore, it must be examined how burdens could be offset. In the worst-case scenario, affected individuals could apply for basic social security.
Cost Shifting to Basic Social Security?
Andreas Grutzeck, social policy spokesman for the CDU parliamentary group in the Hamburg Parliament. This is precisely where the Tenants’ Association sees a fundamental problem with the reform. If housing benefits decrease so significantly that households instead become dependent on basic social security or social welfare, the state saves in one area but has to spend more in another. The federal government itself acknowledges that such shifts can occur: according to the draft bill, approximately 163,000 households nationwide could switch to basic social security or social welfare by 2029 as a result of the changes. ‘A consequence of this reform can also be that people enter the transfer payment system,’ says Eifler. In that case, housing costs would also be covered by the state. Her question is therefore: ‘What do we achieve with this reform?’ The changes have not yet been decided. After the summer break, discussions at the federal level will continue. The Hamburg SPD, together with other states, intends to seek amendments. Kienscherf demands that the reform in its current form be prevented.
Social Association Hamburg: ‘Poverty is a Matter of Political Priorities’
In the NDR Fernsehen’s Hamburg Journal, the new head, Sally Peters, calls on politicians to counteract the growing poverty in the city.
Criticism of Housing Benefit Application Processing Times in Hamburg
In some cases, people in Hamburg wait many months for a housing benefit application to be processed. The Left party sharply criticizes this.
Source: https://www.ndr.de/nachrichten/hamburg/wohngeldreform-hamburger-spd-stellt-sich-gegen-bund,wohngeld-150.html
