The government allocates hundreds of millions to support residents in public housing companies.
Last month, the Danish government reached an agreement with several parliamentary parties to provide emergency grants under the name of inflation aid, including allocating 350 million Danish kroner to support tenants in public housing who are currently facing difficulties in covering their expenses due to inflation and rising bills.
According to DR, citing the tenants' organization Landsbyggefonden, the rent subsidy is expected to be paid to the relevant housing associations so that groups of residents can benefit from the assistance, which will be in the form of temporary rent reductions. The money will be paid to the companies, which will in turn identify the residents who need this support, starting from September 2023. According to the same source, the Ministry of Social Affairs, Housing and Senior Citizens estimates that the payment will be made after September, as Minister Pernille Rosenkranz-Thiel believes. She also stated that the aforementioned aid package will give local municipalities the opportunity to avoid evicting tenants who are in a truly "deplorable situation".
In principle, Landsbyggefonden will decide who receives the funds, with the aim of avoiding the mistakes that occurred in what was known as the heating subsidy. This was on August 10, 2022, when heating assistance worth 6,000 tax-free kroner was paid to nearly 411,000 households, and then, according to an investigation by the Danish Energy Agency, it turned out that up to 10,600 households had received the amount by mistake.
The process is described as a somewhat difficult administrative process, and therefore there will be further discussions about the details and the implementation mechanism at a later time.
