(Updated with the addition of entertainment grant information and work information without any deduction or reduction in aid)<\/p>\n\n\n\n
Labor Minister Peter Hummelgaard reached an agreement with the parties supporting the government on a reform of the kontanthj\u00e6lp cash assistance system with the Radical Party, the Unity List, the Socialist People's Party and the Alternative Party.<\/p>\n\n\n\n
The cash assistance cap (kontanthj\u00e6lp) has been abolished and replaced by an \u201cincome ladder\u201d (indkomsttrappe) which sets a ceiling on the amount of public benefits you can receive overall. With the new agreement, it will be possible for cash assistance recipients to work more hours without deductions. In addition, a person is entitled to free medicine after one year of cash assistance, while the children of cash assistance recipients receive free medicine from day one.<\/p>\n\n\n\n
The child allowance (b\u00f8rnetilskud) will be permanent, with some funds allocated for recreational activities such as football, scouting, and children's birthday parties. The recreation allowance, also known as the "leisure allowance for children," will be provided to all children in the cash assistance system at a rate of 250 kronor per child per month, up to a maximum of 1,000 kronor per family.<\/p>\n\n\n\n
The recreation grant can be used for sports activities, cultural activities, children's birthdays, or educational tools. Beneficiaries can receive the recreation grant after receiving cash benefits for three months. Parents must document that at least two-thirds of the recreation grant has been spent on the children.<\/p>\n\n\n\n
Meanwhile, cash assistance beneficiaries who are over the age of thirty are entitled to have their status reassessed after 24 months in the system to clarify whether they should continue to benefit from the cash assistance or whether they should switch to another benefit system.<\/p>\n\n\n\n
In the future, cash benefit recipients will also receive an additional 500 Danish kroner per year, and the limit for receiving cash benefits will be raised from 10,000 Danish kroner to 12,000 Danish kroner for single individuals and from 20,000 Danish kroner to 24,000 Danish kroner for married individuals.<\/p>\n\n\n\n
The income deduction model also consists of different tax-exempt amounts depending on the level of entitlement, meaning it would be possible to earn 2,500 kronor or 5,000 kronor without any deduction from the assistance.<\/p>\n\n\n\n
Labor Minister Peter Hummelgaard stated that the agreement would benefit 40,000 children in the cash assistance system, and that nearly 10,000 children in the system would be lifted above the low income threshold.<\/p>\n\n\n\n
The agreement costs nearly half a billion kroner extra, which was secured by abolishing housing subsidies for parental purchases, and the remainder will be negotiated when next year's budget is negotiated.<\/p>\n\n\n\n
The new system will come into force as soon as possible and no later than January 1, 2024. Until then, the temporary child allowance will be extended.<\/p>","protected":false},"excerpt":{"rendered":"
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