Social - Months of housing benefit processing: federal states demand corrections
The Ministers of the States are urging the Federal Government to make simplifications in housing benefits due to a large backlog of applications and long processing times. "Households with low income have to wait several weeks or months for the payment of housing benefits," said the current chairman of the Ministers' Conference, Bavaria's Minister Markus Söder (CSU), on Wednesday after a special meeting in Berlin. The Federal Government has begun to examine individual measures, but a comprehensive simplification is still not recognizable by the States. The States are now increasing the pressure: At a Ministers' Conference at the end of September in Passau, the Federal Government is expected to present a concrete timetable for corrections.
Housing benefits are paid to citizens with low income as a state subsidy for rent or as a monthly financial burden for self-used home ownership. The amount is based on household size, income, and financial burden. It is funded equally by the Federal Government and the States.
With the reform that came into effect at the beginning of 2023, both the housing benefit amount and the group of eligible applicants were significantly expanded. Since then, the number of applications has skyrocketed nationwide, and processing times have become longer. States and municipalities have already raised the alarm with the Federal Government several times in the past few months due to the overload of their authorities.
Processing times are several months, said Söder. In general, they are usually under five months. "I personally know examples where it takes twelve months or longer," he reported. Therefore, the Federal Government must ensure easements in the application of the law and reduce bureaucratic effort - this is what the States agree on, and that across party lines, emphasized the CSU politician.
Bavaria, Baden-Württemberg, Brandenburg, Saxony, Saxony-Anhalt, and North Rhine-Westphalia also demand a different cost distribution: The Federal Government must pay more than 50% in the future, at least the additional costs that have arisen since the latest reform. "The full assumption of the costs for housing benefits by the Federal Government would be just from the perspective of these States and is therefore to be pursued," said the North Rhine-Westphalia Minister of Building, Ina Scharrenbach (CDU). She calculated only for her state: Before the reform, NRW had to pay 218 million euros, in 2023 it was 543 million euros.
- The Ministers of the States, led by Bavaria's Minister Markus Söder (CSU), have urged the Federal Government to make corrections in housing benefits due to long processing times.
- The States are anticipating a concrete timetable for corrections from the Federal Government at the Ministers' Conference in Passau at the end of September.
- Christian Bernreiter, Federal Minister of Labour and Social Affairs, is responsible for housing benefits in Germany, and his department is currently processing a large backlog of applications.
- The processing time for housing benefits has significantly increased, with some applicants waiting twelve months or longer, according to Minister Söder.
- The States, including Bavaria, Baden-Württemberg, Brandenburg, Saxony, Saxony-Anhalt, and North Rhine-Westphalia, are demanding that the Federal Government should pay more than 50% of the costs for housing benefits, as the additional costs have arisen since the latest reform.
- The Minister of Building in North Rhine-Westphalia, Ina Scharrenbach (CDU), stated that her state's costs for housing benefits increased from 218 million euros before the reform to 543 million euros in 2023.
