Typical questions for the cash benefits cap
I have applied for cash benefits and I receive rent subsidies as well. Will I be impacted by the cash benefits cap?
Yes. If you are entitled to receive cash benefits, you will receive a letter from your municipality about what your cash benefits cap is.
Udbetaling Danmark will automatically receive the information and recalculate if your rent benefits (and any potential individual housing benefits) need to be reduced.
If you already know what your cash benefits cap is, you can make an initial calculation based on how much you receive in rent subsidies and (if any) individual housing benefits.
- Calculate what the cash benefits cap might mean for you
I live together with someone who receives rent subsidies
If you live with someone who receives rent subsidies, your cash benefits cap might result in his/her rent subsidies being reduced. When Udbetaling Danmark calculates how much you receive in total benefits, part of that person’s rent subsidies will be designated as your rent subsidies.
This is because the rent subsidies are divided between the number of adults in the home. If your total benefits, including your share of the rent subsidies, is higher than your cash benefits cap, the person you are living with will receive a reduced rent subsidy payment.
The rent subsidies will be divided between the number of adults living in the home. For example, if you are two adults living in the home, and the person you are living with receives DKK 2,000 in rent subsidies, DKK 1,000 of that will be included in the calculation of your total benefits. If three adults are living in the home, DKK 666 will be included in the calculation.
Can I avoid the cash benefits cap?
As a general rule, you cannot avoid the cash benefits cap. However, there are situations where your rent subsidies and your individual housing benefits will not be reduced due to the cash benefits cap. This applies if you or the person you are living with:
- receive rent subsidies based on the rules for those who are very mobility impaired
- receive rent subsidies based on the rules for 24-hour assistance
- have been approved for and designated a senior home or similar type of home based on a physical or mental impairment
- are an old-age pensioner or disability pensioner based on the old rules and you have been assigned a senior home or similar type of home by the municipality.