Chancellor Olaf Scholz (SPD) plans to expand the housing allowance in 2023. More people would have to get the money, including a heating cost component. In addition, Scholz confirmed the introduction of the planned citizens’ allowance at the turn of the year.

In view of the energy crisis, Federal Chancellor Olaf Scholz has announced that he will expand the group of housing benefit recipients in the new year. “But we think that a lot more people have to get that, and there also has to be a heating cost component. And we will do such a reform at the beginning of next year,” said the SPD politician on Friday evening at the start of his party’s election campaign in Cuxhaven, Lower Saxony. The state parliament in Lower Saxony will be re-elected on October 9th.

Scholz also promised the introduction of the planned citizens’ allowance at the turn of the year. “We have already agreed: the citizen’s allowance, which we have been campaigning for, will come at the turn of the year,” said Scholz. The introduction of the citizen’s allowance, which is intended to replace Hartz IV, is one of the most important socio-political projects of the traffic light coalition.

Scholz also announced tax relief. This time, pensioners and students should also benefit from the relief.

Before Scholz, Federal Finance Minister Christian Lindner (FDP) had already announced the expansion of housing benefits from 2023 as part of a third relief package. “The housing benefit in its reformed form should also reach people with low incomes and include people who live in their own homes with a small pension,” Lindner recently told the “Südkurier”.