According to newly released figures from the Federal Employment Agency (Bundesagentur für Arbeit, or BA), more than 20,000 single-person welfare recipients were living in particularly large apartments with at least 100 square meters of living space in March 2025.
This development is closely tied to the Bürgergeld policy on the grace period (Karenzzeit), which was introduced on January 1, 2023. During this twelve-month period from the beginning of benefit receipt, the state fully covers the actual housing costs—even if they exceed the limits for reasonable rent as set by local authorities. If, despite considerable effort, a cheaper apartment cannot be found, the actual rent may continue to be covered under specific conditions even after this period.
According to the legal explanation provided by lawmakers, the grace period is intended to prevent severe social hardship when benefits begin and to allow recipients time to reorient themselves professionally without having to relocate immediately.
Political Debate on Rising Housing Costs for Welfare Recipients
Spending on housing support for Bürgergeld recipients has become a contentious issue in German politics. Chancellor Friedrich Merz of the Christian Democratic Union (CDU) recently criticized the scale of the expenses in an interview on the ARD program Sommerinterview and called for a cap on the housing costs the state pays to welfare recipients. He stated that the current level of spending was too high.
According to the Federal Employment Agency, in March 2025 alone, 1.13 billion euros were spent on so-called recognized rent costs. This figure excludes heating, utilities, and one-time payments such as security deposits. For comparison: in December and September 2024, recognized housing expenditures each stood at 1.15 billion euros, while in June 2024 they reached 1.16 billion euros. Since mid-2024, a slight downward trend in these figures has emerged.
However, when taking into account all housing-related expenditures—including heating, utilities, mortgage interest for owner-occupied properties, and one-time payments—the total cost in March 2025 amounted to 1.48 billion euros. This remains the highest recorded amount and is categorized separately in the BA’s statistics under “actual costs.”
Large Apartments Among Bürgergeld Recipients
According to the latest figures from the BA, in March 2025, 181,667 benefit-receiving households (Bedarfsgemeinschaften) were living in apartments of at least 100 square meters. Among them were:
- Over 20,000 single-person households,
- 22,861 two-person households,
- 27,617 three-person households,
- and approximately 111,000 households with four or more people.
According to the BA, households with four or more people are generally considered entitled to such living spaces, depending on the individual circumstances.
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