In a further measure to implement the climate protection plan, the German government has decided to introduce a Co2 price for the transport and heating sectors from January 2021. Accordingly, the prices for heating costs will rise. To protect low-income households in particular from the increase in costs, housing allowances will therefore also be increased from January 2021. Thus, the housing allowance will increase by around ten percent with the planned Co2 component.
The financial support is aimed at low-income households and low-income earners. Families and pensioners in particular are to benefit from the increased housing allowance. It does not matter whether people live in rented or owned property. The prerequisite for the subsidy is that no other state support, such as Hartz IV, is received.
Citizens living in cities with above-average rents should also be able to make use of the subsidy. To this end, the German government has planned to introduce an additional "rent level VII" and also to take regional differences into account. Household size plays a key role in calculating the amount of the Co2 surcharge. Part of the amount collected will flow back to tenants and owners through the increased housing subsidy. The other part of the revenue from the Co2 price is to be invested in further climate protection measures.
Source: Federal Government
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