Government wants to make temporary rent subsidy permanent

Denmark’s government wants to turn a temporary rent subsidy into a permanent measure and double its funding, saying the scheme can help more vulnerable people move out of homelessness.

The subsidy pool would rise from 15 million kroner to 30 million kroner. Children, Elderly and Housing Minister Jacob Mark said many people still cannot afford a home or have become homeless after difficult events in their lives.

The temporary scheme allowed municipalities to offer rent support as a short-term helping hand for people trying to secure housing. Mark said the arrangement had worked well and that making it permanent would allow municipalities to plan around it.

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There are unfortunately still many citizens who cannot afford to pay for a home, or who have ended up homeless because of many unfortunate or sad things that have happened in their lives.

The government will send a bill for public consultation on Tuesday. Relevant associations and organizations will be able to comment before the bill is submitted to Parliament. The scheme was introduced under the former SVM government after criticism that its welfare reform could push people into homelessness.

Under the proposal, municipalities with at least 40 homeless residents in the latest count by research center VIVE would receive a share of the pool. The money would be distributed according to the number of homeless people, bringing 33 municipalities into the scheme if Parliament adopts the bill later this year. The measure could take effect on January 1, 2027. The government has not yet identified the funding, which Mark said would be addressed in state budget negotiations.

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By saying that it is a permanent measure, we are also saying that municipalities can plan around it.