Board | The government is unexpectedly withdrawing from the 5 percent deductible for income support

Government is withdrawing from the austerity measure agreed in the government program, which would have imposed a five percent co-responsibility for the amount of necessary housing expenses for the recipients of the basic part of the income support.

It turned out published by the Ministry of Social Affairs and Health on Tuesday from the end of the announcement.

The press release stated that the government is preparing a law according to which rents exceeding the so-called housing standard will no longer receive the previous amount of income support.

“The purpose of the proposal is to replace the five percent co-responsibility in the living expenses of the income support recorded in the government program. The selected model better takes into account the varying situations of aid recipients,” the ministry announced.

In reality, the reform announced now is based on the recording of the government program and in that sense does not directly “replace” the canceled tightening.

Based on the press release, HS first erroneously reported that the government is preparing a new tightening to replace the canceled one.

For the statement round according to the outgoing law, the applicant would have three months to look for a more affordable apartment if the applicant’s living expenses exceed the amount considered necessary.

With the housing standard, Kela has defined what are the amounts considered reasonable for housing expenses per municipality.

Even after the deadline, the applicant can continue to live in his current apartment, but in the case of income support, housing expenses will only be accepted in accordance with the housing standard.

Housing expenses considered to be a necessary amount would be regulated in more detail in the regulation.

Based on the current law, housing costs are taken into account in full if the applicant for income support has not had the actual opportunity to acquire an apartment in accordance with the housing standard at the cost of his place of residence.

This basis is supposed to be removed from the law.

The reform aims at savings and positive effects on employment. The government’s idea is that people will be better employed if housing allowances are cut.

Living expenses maximum amounts would be regulated by law and regulations in the future. Until now, Kela has determined municipality-specific and indicative maximum housing expenses.

Exception rules are coming into the law, if the applicant has a special reason defined in the law for living in his current apartment, even if it is more than the maximum amount of support.

The special criteria defined in the law would be, for example, the child’s special needs and the applicant’s or his family member’s poor health, otherwise reduced functional capacity and advanced age.

The situation of families with children would remain practically at the current level after the law change, the Ministry of Social Affairs and Health said on Tuesday the bulletin sent says.

Presentation is part of the program to cut hundreds of millions of euros in housing subsidies, which is supposed to strengthen the public finances by 363 million euros.

It is estimated that income support expenses will decrease by 31 million euros per year as a result of the bill, and the bill is estimated to strengthen employment by 1,200 new employees.

The government justifies the denting of the co-responsibility proposal by saying that the new model better takes into account the varying situations of aid recipients.

The changes do not apply to those households that already live in apartments that comply with the housing standard or that have special reasons for housing expenses that are higher than the standard.

The bill went to the opinion round on Tuesday. The law is supposed to enter into force on July 1, 2024.

Correction 29.8. 11:10 p.m.: In the article, it was wrongly claimed at first that the bill that is now going to the opinion was not mentioned in the government program.