Germany Plans “Square Meter Cap” to Protect Welfare Recipients from Exploitation

Newsworm
with
AFP
October 12, 2025
Federal Labor Minister Bärbel Bas wants to fight welfare housing fraud with a new “square meter cap,” limiting rent costs for social housing. The reform targets criminal groups exploiting vulnerable citizens in poor housing under Germany’s welfare system.
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Germany Plans “Square Meter Cap” to Protect Welfare Recipients from Exploitation
Federal Labor Minister Bärbel Bas (SPD) also intends to combat organized welfare fraud involving junk real estate in the planned citizen's benefit reform. She will propose a "municipal square meter cap" for this purpose, Bas told "Bild am Sonntag." - AFP

Federal Labor Minister Bärbel Bas (SPD) wants to crack down on organized social fraud involving so-called junk real estate as part of the planned citizen's benefit reform. Among other things, she will propose a “municipal square meter cap,” Bas told Bild am Sonntag. This is intended to give municipalities the opportunity to prevent excessive rent demands.

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This phenomenon recently made headlines, particularly in North Rhine-Westphalia. Politicians and authorities say that organized gangs deliberately house social welfare recipients from Southeast Europe in dilapidated buildings in order to maximize profits from rent payments made by the job center. Numerous welfare recipients are housed in cramped conditions, and some of the buildings have life-threatening defects. Furthermore, this practice is often linked to welfare fraud.


According to a report in Bild am Sonntag, the “square meter cap” is to be included in the draft bill for the planned welfare reform by the federal government, which is made up of the CDU/CSU and SPD. The reform of basic social security, which provides for tougher sanctions in cases of non-cooperation, is currently the subject of heated political debate. Social welfare organizations and trade unions speak of social devastation.

“We want to effectively limit the cost of accommodation and take action against exploitation at the expense of the poorest with so-called junk real estate,” Bas told Bild am Sonntag. The government will now propose further measures to this end. The “square meter cap” is one of them.

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