Steffen Krach, the SPD regional chairman for Berlin, has announced his opposition to planned major reductions in the housing allowance (Wohngeld). While he supports reforming the housing allowance, provided the changes streamline the benefits system and cut bureaucracy, he categorically rejects any cuts. Speaking to Stern, Krach also expressed disbelief that the SPD in the federal government would hold a different view. He said, “One just has to look at who we are talking about”. Krach, who is also a top candidate for the municipal elections in September, stressed that the people affected are families, often single parents, as well as pensioners, who are struggling to make ends meet despite their income or pensions due to rising living costs. He estimates that 55,000 households in Berlin, many located in the eastern parts of the city, are affected. “We, the Berlin SPD, will take to the barricades for these people” Krach declared. This stance comes as Minister for Building, Verena Hubertz (SPD), announced in early May that she intended to implement cuts to the housing allowance to meet a €1 billion austerity mandate issued by Finance Minister Lars Klingbeil (SPD). Currently, spending on this social benefit amounts to €24 billion. This proposal follows a period when the SPD-led traffic light coalition under Olaf Scholz (SPD) significantly increased both the amount and the number of recipients of the housing allowance back in 2022.
Politics
