Definition at a glance
Housing Benefit Plus refers to the comprehensive reform of housing benefit law as of January 1, 2023. The aim of the reform was to relieve significantly more households and adapt the subsidies to the increased housing and energy costs.
What has changed?
With the Housing Benefit Plus Act, housing benefit was fundamentally modernized. The three most important pillars of the reform are the increase in the performance level, the introduction of a heating cost component, and the consideration of a climate component.
1. Higher benefit amounts
By adjusting the housing benefit formula, the monthly payout amount for many households has doubled on average. In addition, the income limits were significantly raised, so that since 2023 around two million households (instead of the previous 600.000) are eligible.
2. The heating cost component
For the first time, a permanent heating cost component was integrated into the housing benefit. It is calculated as a flat-rate supplement (approx. €1.20 per m²) and helps to cushion the increased energy costs without the need to submit detailed individual bills.
3. The climate component
To make energy-efficient renovations in the building stock socially acceptable, a climate component was introduced. It increases the maximum amounts for rent or burden by a flat rate (approx. €0.40 per m²) if the living space has been modernized.
Legal Basis
The legal changes were passed in the 'Act to Increase Housing Benefit (Housing Benefit Plus Act)' and have been incorporated into the various sections of the WoGG.