I recieve housing benefits and have applied for cash benefits. 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 calculate if your housing 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 housing benefits and if any individual housing benefits.
I live together with someone who receives housing benefits
If you live with someone who receives housing benefits, your cash benefits cap might cause a reduction of his/her housing benefits. When Udbetaling Danmark calculates how much you receive in total benefits, part of that person’s housing benefits will be designated as your housing benefits.
This is because the housing benefits are divided equally between the number of adults in the household. If your total benefits, including your share of the housing benefits, is higher than your cash benefits cap, the person you are living with will receive a reduced housing benefit.
The housing benefits will be divided between the number of adults living in the household. For example, if you are two adults living in the home, and the person you are living with receives DKK 2,000 in housing benefits, 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 housing benefits and your individual housing benefits will not be reduced due to the cash benefits cap. This applies if you or a person you are living with:
- receive housing benefits based on the rules for those who are very mobility impaired
- receive housing benefits based on the rules for constant care
- have been approved for and assigned a public senior housing or similar type of home due to a physical or mental impairment
- are an old-age pensioner or disability pensioner based on the old rules and have been assigned a public senior housing or similar type of home by the municipality.