The government wants to adjust the housing allowance scheme

ApartmentIllustration.Apartment. Photo:

The Government proposes to amend the housing benefit scheme so that the rates are adjusted in line with inflation. The measure will cost about 100 million.

Local Government and Modernisation Minister Jan Tore Sanner will present the proposal Tuesday.

– We improve housing benefit so that those who have low incomes can get better help in keeping a good and safe place to live,  Sanner says to the news agency NTB.

In the proposed state budget for next year, the Government plans to strengthen the housing allowance by 100 million. If the scheme had not been adjusted, it would mean that 3,000 households would no longer be included in it next year.

The housing allowance is a means-tested, government support for households with low incomes and high housing expenses.

The requirements for receiving the housing allowance have in recent years become increasingly stringent because the rates for calculating the deductible has not followed the overall inflation. Today  roughly 100,000 households get a housing allowance. Three years ago, the figure was 109,000.

Another weakness of the scheme has been that it is calculated from the income figures, which can be one to two years old. Now this will change so that the calculations will be based on last month’s income instead.

– The housing benefit is important to many people, and we have to ensure that it is adjusted in line with inflation and that it is based on updated information about the applicant’s financial situation. With the changes we are making, we will repair a hole in the social safety net of our services, he said.


Source: NTB scanpix / Norway Today