Government proposes to raise amounts of general housing allowance and housing allowance for pensioners in respect of heating costs

The Government proposes to compensate low-income households for the sharp rise in the heating prices by raising the amount of the expenditure norm of the heating category and the expenditure norm of the maintenance category for single-family houses by 57 per cent in 2023. A corresponding increase in the amount of acceptable heating costs for housing allowance for pensioners would be laid down by decree. The aim of the proposal is to safeguard the purchasing power of low-income recipients of benefits in times of rising energy prices.

The general housing allowance would be adjusted due changing housing costs if the acceptable housing costs would rise by at least EUR 50 per month. The amount of the increase is always case-specific, depending on the size of the household, the municipality where the house is located and the household income that affect the amount of the allowance. Many benefits and income taken into account when determining the amount of the general housing allowance will be raised as of 1 January 2023, and they, too, may affect the amount of the allowance.

The proposal aims to make it easier to pay housing allowance directly to lessors when benefit recipients are facing difficulties to pay rent. The purpose is to safeguard the housing of benefit recipients and prevent evictions.

The proposal concerns the 2023 budget proposal and its amendment and is intended to be considered with them.

The proposed Acts would enter into force on 1 January 2023. The proposed amendment to the Act on General Housing Allowance concerning heating costs and maintenance costs would be in force until the end of 2023.

Inquiries: 

Mikko Horko, Ministerial Adviser, firstname.lastname@gov.fi

• Goverment proposal (in Finnish)