Rise in Housing Benefit Allowance in Sweden Proposed by 1,000 Kronor

Sweden's welfare minister, Anna Tenje, has highlighted that housing costs are a significant monthly expense for many families with children. In an effort to alleviate this burden, the government, including finance minister Elisabeth Svantesson, has announced plans to increase housing allowances.

Elisabeth Svantesson has proposed an additional 80 billion kronor in spending, a portion of which will be allocated to this increase. The maximum housing cost for which benefits are available will be raised by 1,500 kronor for families with one child and 2,000 kronor for families with two or more children.

This increase is part of an agreement made by the government with the Sweden Democrats. Oscar Sjöstedt, the economic policy spokesperson for the Sweden Democrats, stated that this measure ensures more children grow up in a more secure financial situation.

However, the opposition Green Party, led by economic spokesperson Janine Alm Ericson, has accused the government of "utter hypocrisy" regarding the housing benefit increase. They argue that the housing benefit increase does little to improve the finances of those affected due to the expiration of a temporary increase.

Despite this criticism, the increase in housing allowance is a targeted measure aimed at financially weak families with children. It marks the first increase in the housing allowance payment cap in more than 30 years.

Elisabeth Svantesson is scheduled to deliver her budget proposal on September 22nd, which is expected to include this housing benefit increase. The Swedish Finance Minister is expected to present her budget proposal for 2026 within the current election year, with specific timing not yet confirmed but likely before the reduction of VAT on food starting April 1, 2026, which is part of the budget plan announced by the government.

It's important to note that the increase in housing allowance is not a general increase in other benefits like child allowance. A family with one child can receive up to 800 kronor extra per month, while a family with two or more children can receive up to 1,000 kronor extra per month due to this increase.

This targeted measure is aimed at families with the greatest needs, providing a much-needed relief for many families with children in Sweden. The detailed implications of this increase will become clearer once Elisabeth Svantesson delivers her budget proposal next week.