The German Association of Cities (Deutscher Städtetag) is concerned that planned cuts to housing benefits (Wohngeld) will impose further financial strains on local municipalities. According to Christian Schuchardt, the Director-General of the association, if some affected individuals lose the financial support, they may transition into basic social security, which would then mean cities have to cover a portion of the costs for rent and heating.
Schuchardt also called for a simplification of the application processes. He expressed disappointment that the federal government is not utilizing the reform to significantly streamline the application procedures, noting that the deadlines stipulated in the current draft law are far too restrictive.
Acknowledging that the federal government itself is facing financial constraints, Schuchardt noted that the association accepts that reforms are necessary. However, he pointed out that while fewer people might receive housing benefits and the benefit amount itself is being reduced, this process effectively saves money for the federal government and the states, but it could simultaneously create additional costs for local municipalities.
The Städtetag representative demanded that this situation be rectified. He stressed that the agreement reached during the most recent Minister-President conference, in which the Chancellor was involved, stipulated that the federal government should compensate local authorities for financial burdens caused by federal laws. This compensation, he insisted, must also apply to the housing benefits reform.
