The Paritätischer Welfare Association has strongly disapproved of the planned cuts to housing benefits (Wohngeld). Joachim Rock, the organization’s chief executive, warned that these reductions risk increasing poverty and creating existential hardship for over one million households.
Rock expressed grave concern over the federal government’s reduction plans, noting that the cuts are specifically targeted at areas where the risk of poverty is already high. The criticism centers on the proposed savings from housing benefits, a crucial financial safety net for many individuals on low wages or small pensions who rely on the assistance to pay for housing.
The social expert described the initiative as merely a symbolic act of budgetary consolidation that will hardly alleviate the burden on the state, but will severely affect the recipients. He argued that the one billion euros government intends to save from the federal share would make no noticeable difference to the national budget. However, he stated that for more than a million households dependent on that money, the difference is profoundly significant. Rock pointed out that individuals already threatened by poverty must often spend nearly half of their disposable income solely on living costs. He concluded that the expectation of austerity is excessive if these benefits are cut, noting that reductions in housing benefits could result in more people falling into basic welfare programs and causing nearly all personal savings to vanish.
Rock could also not endorse the increasing costs associated with housing benefits themselves. He attributes these rising expenses directly to a lack of regulation in the rental market and the rapid escalation of rents. Instead of relying on benefits, he suggested that a better way to conserve money would be to ensure lower rental prices. Furthermore, he noted that major housing corporations sometimes distribute revenues of up to 200 euros per apartment to shareholders, some of whom are supported by taxpayer funds. While acknowledging the importance of housing benefits, Rock stressed that the government must also utilize its power to protect tenants from excessively high rents.
