Housing benefits – if you receive social assistance

I receive housing benefits and have applied for social assistance (kontanthjælp). Will I be impacted by the cap on social assistance?

Yes. If you are entitled to receive social assistance, you will receive a letter from your municipality about what your cap on social assistance is.

Udbetaling Danmark will automatically receive the information and calculate if your housing benefits and special help for high housing costs need to be reduced.

If you already know what your cap on social assistance is, you can make an initial calculation based on how much you receive in housing benefits and special help for high housing costs.

• Calculate what the cap on social assistance might mean for you

I live together with someone who receives housing benefits

If you live with someone who receives housing benefits, your cap on social assistance 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 cap on social assistance, 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 cap on social assistance?

As a general rule, you cannot avoid the cap on social assistance. However, there are situations where your housing benefits and your special help for high housing costs will not be reduced due to the cap on social assistance.

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.

You can make an initial calculation and get a sense of how the cap on social assistance might impact your housing benefits and any special help for high housing costs.

You can also use the calculator to see what it might mean for your housing benefits and special help for high housing costs if you have a job.

You can make an initial calculation here:

• Calculate what the cap on social assistance might mean for you

It might be the case that you will get reduced housing benefits or, if relevant, individual housing benefits if you receive:

• cash benefits (kontanthjælp)
• educational assistance (uddannelseshjælp)
• self-sufficiency and return benefit (selvforsørgelses- og hjemrejseydelse)
• transition benefit (overgangsydelse).

The reason is that since October 2016, there has been an upper limit for how much you can receive in total benefits from cash benefits, educational assistance, self-sufficiency and return benefit and transition benefit, housing benefits and special help for high housing costs. This is called the cap on social assistance (kontanthjælpsloft).

Are your housing benefits being paid to your housing organisation?

If Udbetaling Danmark normally pays your housing benefits to your housing organisation, your rent payments will increase if your housing benefits are decreased.

Exceptions to the cap on social assistance

There are situations where your housing benefits and your individual housing benefits will not be reduced as a result of the cap on social assistance.

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 24-hour assistance
• 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.

• Read more about the cap on social assistance on borger.dk (in Danish)

If you live together with someone who receives social assistance, a part of your housing benefits will be included in the calculation of the total benefits he or she receives.

When Udbetaling Danmark calculates how much the person receiving cash benefits should have payments reduced, part of your housing benefits will be designated as his or her housing benefits.

This is because the housing benefits are divided equally between all adults in the home. Therefore, part of your housing benefits will be included in the calculation of the total benefits the person you live with receives.

For example, if you are two adults living in the household and you get DKK 2,000 in housing benefits, DKK 1,000 of that will be included in his/hers calculation.

If three adults are living in the home, DKK 666 will be included in the calculation. Essentially, the housing benefits are divided equally between the number of adults living in the home.

You get your special help for high housing costs paid out on the last working day of the month.

However, there may be cases where you get your individual housing benefits paid at a later date. Late payments of special help for high housing costs may be a result of the municipality first having to finish processing your case for special help for high housing costs.

It might also, for example, be because your municipality has not yet received a salary statement from you for the month in question. 

If you are working and receive supplementary cash benefits, you may receive more in housing benefits and, if relevant, special help for high housing costs. In which case you will receive the extra benefits 2 months delayed.

For example, if you work in April you will receive more in housing benefits in June due to your salary for April. In other words, the payments come two months later.

This is because it is only after two months that Udbetaling Danmark has the information from your municipality about your earnings and what you have received in supplemental cash benefits.

You do not need to take any action yourself, as Udbetaling Danmark receives the information automatically. You will receive a letter about what you will receive in the future in total benefits.

If, for example, you get a divorce, move or begin working and you are receiving cash benefits, this may have an impact on the cap on social assistance for your total benefits and thus also what you get paid out.

If your situation changes, your municipality will calculate the maximum amount you can receive. Afterwards, Udbetaling Danmark automatically recalculates your housing benefits and, if relevant, your special help for high housing costs. Therefore, you will receive letters from both your municipality and Udbetaling Danmark every time your situation changes.

Here you can see what changes have an impact on how much you get paid out:

• You move to another home
• You no longer live by yourself
• Your rent payments change
• You begin working
• You have a child
• Your child reaches the age of 18
• You get divorced
• You get married

You can also make an initial calculation of how much you get in housing benefits and, if relevant, special help for high housing costs.

• Calculate what the cap on social assistance might mean for you

You should contact your municipality if you have questions regarding:

• your cash benefits (kontanthjælp), self-sufficiency and return benefit (selvforsørgelses- og hjemrejseydelse) or educational assistance (uddannelseshjælp)
• your special help for high housing costs (særlig støtte)
• the cap on social assistance for your total benefits.

You can contact Udbetaling Danmark by calling 70 12 20 60 if you have questions regarding:

• how much your housing benefits or special help for high housing costs will be reduced
• how your housing benefits are calculated.