germanyโ to Implement Housing โCost Capsโค for Citizens’ Benefit Recipients to Combatโ Fraud
Berlin – โFederal Labor Minister Bรคrbel Bas โ(SPD) โฃhas announced plans to tackleโ widespread social fraud linked โขto substandardโค housing, oftenโค referred to as “junk properties,” by introducing a “municipal square meter cap” on โขaccommodation costs for citizens receiving financial assistance. โค The initiative,revealed in a preliminary report to “Bildโ amโข Sonntag,” aimsโค to protect vulnerable individuals from exploitation and controlโฃ escalating expenses.
Minister Bas stated the โฃgoal โis to โฃ”effectively limit the costs of accommodation โand takeโ actionโข against exploitationโข atโ theโฃ expense of โthe poorest with so-called โjunk properties.” The proposed square meter capโ will be integrated into the upcoming bill for โฃcitizens’ moneyโข reform, slated for presentation in the coming weeks. this measure will empower โmunicipalities to prevent โคunscrupulous landlords from charging exorbitant rents โfor overcrowded and frequently enough โฃuninhabitableโ apartments.
The currentโ systemโฃ has seen instances of landlords โคreceiving payments equivalent to โsingle-person rental โขrates โfor tinyโฃ living spaces, with some properties commanding prices per square meter reaching into the three-figureโฃ range. This practiceโ effectively โขdrains โpublic funds and leaves benefit recipients in precarious living conditions.
Coalition โคDivided on Potential Savings
While the citizens’ money reform is intended โto streamline the social โขsafety net, โdisagreement exists within the governing coalition regarding the โextentโค of potentialโข savings.Carsten linnemann,General Secretary of the CDU,estimates savings could reach several billion euros. โ”Nobody can predict the โnumber with any serious accuracy,” Linnemann told “Bild am Sonntag,” “But the aim must โขbe that a reform alsoโข saves money. I amโค sure thatโค several billion โขeuros can be saved. What is โsignificant โis that we create a โnew โlevel of justice and get people back into work quickly.”
Minister Bas, however, โขemphasized aโฃ different viewpoint. โ”Weโ agree that we can achieve savings in basic security โคprimarily if we โขuse the reform to get more people into work. Above all,โข we need economic growth for this,” she stated,โข highlightingโ the importance of employment as a key driver of โlong-term financial stability and reduced โคreliance on โsocial benefits.
the implementation of the municipal square meter capโข represents a significant โstep towards addressing โฃthe systemic issues of fraud andโข exploitation within Germany’sโข social welfare system, while the debate over overall savings underscores the complex challengesโ of balancing fiscal responsibility withโ the needs of vulnerable citizens.
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