A leading figure within the Green Party is advocating for a significant shift in how Germany’s citizen’s allowance (Bürgergeld) system addresses housing costs, highlighting substantial potential savings. Andreas Audretsch, parliamentary group vice chair, argues the focus should move away from recipients and towards large corporations driving up rental prices.
Audretsch, speaking to RTL and ntv, contends that these corporations are profiting at the state’s expense by leveraging allowances for housing costs associated with citizen’s allowances. He believes curtailing these practices is key to realizing savings.
Proposed solutions include government intervention to regulate rental prices and empowering job centers to actively challenge exorbitant rents – specifically those exceeding local averages by 20 to 30 percent. Audretsch believes such action could unlock considerable cost-saving opportunities.
The financial burden of housing for citizen’s allowance recipients has increased significantly. State expenditure rose from €14 billion in 2011 to €18 billion last year, a difference of €4 billion. This increase underscores the potential for savings achievable by confronting practices employed by major real estate companies within the framework of the citizen’s allowance system.
