Red-Green Municipality Defies Parliamentary Decision on Income Support

The City of Stockholm has decided on changes to its guidelines for financial assistance in an attempt to limit the consequences of upcoming legislative changes regarding income support.

The background is that, in May, the Swedish Parliament decided that starting January 1, 2027, municipalities will no longer be able to provide financial assistance beyond the national standard. At the same time, the government is working on creating a new national standard for income support.

At the City Council meeting on June 16, Stockholm adopted new guidelines stating that certain compensations should not be counted as income when assessing the right to economic support. This applies, for example, to habilitation compensation for individuals participating in daily activities according to LSS, as well as certain apprenticeship allowances.

The new guidelines also allow for other types of compensation to be excluded from the income calculation if there are special reasons. This could include compensation linked to activities with a socially supportive or inclusive purpose.

According to the city’s Commissioner for Social Affairs, Alexander Ojanne (S), the assessment is that the guidelines can be compatible with the new legislation even after the rules come into force next year. At the same time, he notes that the issue could ultimately be settled by a legal review if the state and the municipality interpret the regulations differently.

– If we have a continued right-wing government after the election, there is a risk that it will be interpreted legally as not being allowed to have these rules, but our initial assessment is that it is permitted, Ojanne told HejaOlika.

Alexander Ojanne (S). Photo: Kajsa Göransson

Maintains Its Own Standard

The City of Stockholm has also decided to retain what is known as the Stockholm Standard for the remainder of 2026. This standard means that, in some cases, the level of financial assistance is higher than the national standard.

The Sweden Democrats in Stockholm City Hall had their own proposal to keep support at the minimum level and not provide free SL cards (public transport) to the unemployed, to end social assistance for children of illegal immigrants, and to stop social assistance during the summer if individuals do not look for work.

The question of the future design of income support has become a subject of political debate. Proponents of the national changes argue that the rules need to be more uniform across the country, while critics warn that people with weak finances may find it harder to cover their daily expenses if support levels are lowered.

Stockholm has, since the 2022 election, been governed by a red-green majority consisting of the Social Democrats, the Green Party, and the Left Party. Together, they hold 53 of 101 seats on the City Council, giving them a majority.