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Housing Benefit 2027: Why the Regular Adjustment May Be Skipped

The government draft on housing benefit proposes suspending the adjustment due on 1 January 2027. What is settled, what is open and which figures it gives.
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Contents

Housing benefit (Wohngeld) for 2027 faces an unusual change: the government draft amending the Housing Benefit Act (Wohngeldgesetz) proposes suspending the regular annual adjustment on 1 January 2027. Anyone who receives housing benefit or considers applying should know what the draft provides, which parts are still open and what is already fixed. This guide places the current status in context and explains why the procedural details need careful reading. The German overview is Wohnen im Studium (in German).

Short answer: According to the government draft amending the Housing Benefit Act, there should be no regular adjustment of housing benefit on 1 January 2027 (§ 43 para. 11 WoGG-E, Bundesrat paper 474/26 of 14 August 2026). Under the draft, the heating cost component is 48 euros a month for a one-person household. No decision has been taken. Last updated: November 2026.

The most important points at a glance

  • The draft “Simplification and further development of the Housing Benefit Act” is a government bill that has been sent to the Bundesrat.
  • The adjustment due on 1 January 2027 is to be suspended (§ 43 para. 11 WoGG-E).
  • Under the draft, the heating cost component is set in a new table, with 48 euros a month for one person.
  • The draft estimates relief for the federal government and the states of 738 million euros each for 2027.
  • According to the documents available, neither the Bundestag nor the Bundesrat has decided on the draft.

What does the adjustment mean?

The annual adjustment (Fortschreibung) updates the housing benefit tables at the turn of the year. The draft proposes suspending exactly this adjustment for 1 January 2027. The new provision reads in German: “Abweichend von Absatz 1 findet keine Fortschreibung zum 1. Januar 2027 statt.” In English, no adjustment should take place on that date.

This would suspend the usual approach for the turn of 2027. Whether and how this affects an individual household depends on rent, income and household size. A reliable calculation for your household comes from the responsible housing benefit office once the legal position is settled.

What changes for the heating cost component?

The heating cost component is part of the housing benefit calculation and takes heating costs into account as a flat amount. The draft sets the monthly amount in a new table. The following overview shows the values by household size, as stated in the Bundesrat paper.

Household membersHeating cost component under the draft (monthly)
1 person48 euros
2 persons62 euros
3 persons74 euros
4 persons86 euros
5 persons98 euros

For each additional person the draft adds 12 euros. The values come from § 12 para. 6 WoGG-E. Whether the component changes compared with the current amount matters for the assessment, so see the German guide Wohngeld 2027: Heizkostenkomponente soll für Alleinstehende sinken (in German).

Where does the draft stand?

Bundesrat paper 474/26 of 14 August 2026 contains a government draft that was sent to the Bundesrat under Article 76 para. 2 of the Basic Law. A deadline of 25 September 2026 is stated for the Bundesrat’s opinion. No decision has been taken.

The draft is therefore in the legislative process and not yet adopted. Anyone who wants to rely on a date or an amount should check the current state of the process and treat the figures as binding only once they appear in the Federal Law Gazette.

StageStatus
Government draftBundesrat paper 474/26 of 14 August 2026
Opinion of the BundesratDeadline stated in the paper: 25 September 2026
Decision by Bundestag and BundesratNot taken according to the documents available
Entry into forcePlanned for 1 January 2027, not confirmed

Which figures does the draft give on the budget effect?

The draft estimates the relief for the federal government and the states at 738 million euros each in 2027 and 1,080 million euros each from 2029. These figures describe the financing, not the entitlement of individual households. For your own calculation they only indicate the scale of the changes.

What you can prepare now

Whatever the final version looks like, preparation pays off. A housing benefit application usually requires details on rent, income and the people in the household. If you have gathered these documents already, you can file quickly once the legal position is clear.

  • Tenancy agreement and current proof of rent
  • Evidence of income, such as payslips or benefit notices
  • Details of everyone in the household, with dates of birth and proof of living together
  • Bank statements and records of costs that may be relevant to the application

Frequently asked questions

Will I receive less housing benefit in 2027?

The draft does not answer this in general terms. The amount depends on rent, income and the number of household members. The draft changes several variables at the same time, so the effect differs from case to case. A forecast does not replace a calculation for your household.

Does this already apply?

No. The draft is not an adopted law. What counts is the legal position promulgated in the Federal Law Gazette. Until then the current position applies, and the changes are only plans.

What happens if the draft fails?

Then the current legal position remains. The bill can still change during the process. Whether parts of it are adopted in another form can only be said after the legislative process has finished.

Does this also apply to students?

Whether you receive housing benefit as a student depends on your personal conditions. The difference between housing benefit and BAföG is explained in the German guide Wohngeld oder BAföG: Was Studierende bekommen (in German). The draft affects students only if they meet the conditions.

Where can I find the current version?

The paper and the further course of the procedure are published on the websites of the Bundestag and the Bundesrat. Opinions and decisions appear there as soon as they exist. For your application, the housing benefit office of your municipality or city is the right contact.

What to do now

  1. Follow the status of the Housing Benefit Act on the websites of the Bundestag and the Bundesrat.
  2. Plan your application with the values that apply today, and check changes only once they are decided.
  3. Use a housing benefit calculator for a first estimate, and have the final amount confirmed by the housing benefit office.
  4. Gather your documents on rent, income and household so that an application can be filed without delay.

Related guides

Sources: Bundesrat paper 474/26, draft Act on the simplification and further development of the Housing Benefit Act (German), 14 August 2026 (as of November 2026).

Last updated: November 2026. This guide is general information, not individual advice.

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