Federal Housing Minister Verena Hubertz faces criticism over plans to cut housing benefits, with states warning of financial burdens.

German Federal Housing Minister Verena Hubertz, a member of the Social Democratic Party (SPD), has proposed significant cuts to housing benefits as part of a cost-saving measure. However, her plans have been met with strong opposition from state governments, which fear they will bear the financial burden if affected individuals are forced to rely on basic income support instead. Bremen’s Housing Senator Özlem Ünsal, also from the SPD, criticized the proposal as a ‘social policy setback’ that undermines public trust. She argued that the federal government is breaking its promise to provide relief to households, referencing the recent housing benefit reform that expanded eligibility.

Baden-Württemberg’s Housing Minister Theresa Schopper from the Green Party echoed these concerns, calling it a ‘difficult signal’ to balance the budget at the expense of low-income citizens. She also criticized the lack of time given to local authorities to implement the changes, warning of administrative chaos. The proposed cuts aim to save €1.5 billion in 2024, with the federal government and states each contributing €738 million. By 2028, the annual savings are expected to exceed €2 billion. Critics argue that the plan prioritizes short-term savings over sustainable solutions, shifting costs to states and municipalities.