The government and the Sweden Democrats are now presenting what they describe as a ‘historic increase’ in housing allowance. The proposal is aimed at ‘the most vulnerable families’ and is intended to strengthen their finances, according to the government.
Just a year ago, the Tidö government announced that there would be reduced benefits for large families in order to get more people into work and self-sufficiency. Therefore, the Tidö parties commissioned an investigator to propose stricter requirements for income support.
– We want to ensure that more people work and are self-sufficient and make it more profitable to transition from benefits to work, said Anna Tenje (M), Minister for the Elderly and Social Insurance, to TT at the time.
READ MORE: Tidö government: Reduced benefits for large families
But now, with just one year left until the election, the benefits are set to flow to so-called vulnerable families. In a debate article in Aftonbladet on Wednesday, Minister for the Elderly and Social Insurance Anna Tenje (M), Minister for Social Affairs Jakob Forssmed (KD), the Sweden Democrats’ economic policy spokesperson Oscar Sjöstedt, and Liberal Cecilia Rönn announced that they want to implement a ‘historic increase in housing allowance, aimed at economically vulnerable families.’
In troubled economic times, we support households that are in the most difficult situations. Therefore, we intend to make a historic increase in housing allowance, aimed at economically vulnerable families. It is both right and fair.
– The Tidö government’s debate article
Considering the Tidö government’s previous critical stance on the culture of benefits, the proposal appears contradictory. It may provide short-term relief, but risks cementing a system of benefits in the long run – something that could have been addressed through continued and targeted tax cuts instead.
READ ALSO: REVEALED: Received OVER a hundred thousand in social benefits in just one month
Continuing on the government’s path of lowering taxes for those who work, making it cheaper to refuel, and moving towards changes in the VAT on food.
Through increased housing allowance, vulnerable families facing the toughest times will have more money in their wallets. We strengthen household finances and pave the way for economic recovery.
– The Tidö government’s debate article
The latter option of tax cuts is a path that the Moderates often advocate, as it strengthens the work ethic and provides relief to families who are already struggling to make ends meet. At the same time, it is not certain that the families affected by the increased housing allowance actually belong to groups where the parents are actually working.
The Tidö government emphasizes that the limits for housing allowance have not been adjusted since 1997, despite sharply rising rents, but that does not change the fact that long-term reforms on the tax side would likely have been a sustainable solution and more in line with what these parties have previously advocated in various statements.
READ ALSO: Family in Gothenburg received 61,700 in social benefits in just one month
With the new proposal for next year’s state budget, families with one child can receive up to 800 kronor more per month and families with several children up to 1,000 kronor.
The government also wants to change how housing allowance is calculated. Instead of being based on an estimated annual income, the calculation will now be made monthly. The idea is that the adjustment will reduce the risk of incorrect payments and thus also the risk of families having to repay money if their incomes increase during the year.
The government and the Sweden Democrats have not yet announced the cost of the increased benefits. On September 22, the Tidö parties will present the entire budget proposition for 2026. According to Minister of Finance Elisabeth Svantesson (M), there is room for reform to the tune of 80 billion kronor.