On the draft of the Housing Allowance Strengthening Act - Evaluation of the interplay between housing allowance, unemployment benefit II and supplementary child allowance : IAB statement on the hearing in the Committee on Building, Housing, Urban Development and Local Government of the German Bundestag on 25 September 2019

Abstract

"The present IAB statement addresses the draft of a law to strengthen the housing allowance (Wohngeldstärkungsgesetz - WoGStärkG) and the proposal of the FDP parliamentary group to integrate the three existing means-tested benefits into a single transfer at the hearing in the Committee on Building, Housing, Urban Development and Local Government of the German Bundestag on 25 September 2019. After presenting the problems in the interplay of means-tested benefits, the authors argue for improved coordination between the means-tested benefits unemployment benefit II (Arbeitslosengeld II), housing allowance (Wohngeld) and supplementary child allowance (Kinderzuschlag) in order to increase incentives to work and to reduce the costs of benefit take-up. Legal simplification and harmonization of benefits and entitlement tests is necessary to reduce bureaucratic costs and increase transparency for recipients. The IAB proposes the introduction of an in-work benefit to replace the three means-tested benefits for employed persons. The proposals on the integration of unemployment benefit II, housing allowance and supplementary child allowance in a single benefit are assessed positively." (Author's abstract, IAB-Doku) ((en))

Cite article

Bruckmeier, K., Mühlhan, J. & Wiemers, J. (2019): Zum Entwurf des Wohngeldstärkungsgesetzes - Bewertung der Schnittstellen zwischen Wohngeld, Arbeitslosengeld II und Kinderzuschlag. Stellungnahme des IAB zur Anhörung im Ausschuss für Bau, Wohnen, Stadtentwicklung und Kommunen des Deutschen Bundestags am 25. September 2019. (IAB-Stellungnahme 15/2019), Nürnberg, 12 p.