Benefit Cap Reform to Reduce Support for Large Families in Sweden

The Government proposes a grant reform where social benefits are tightened most for large families with children. For them, it can mean several thousand kronor less per month.

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Benefit Cap Reform to Reduce Support for Large Families in Sweden
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The Government and SD are now in agreement on how their benefit reform will be designed. The purpose is to increase the motivation to work.

Far too many people have become stuck in long-term benefit dependence with a very weak connection to the labor market. It's mainly about foreign-born individuals, says Social Insurance Minister Anna Tenje (The Moderate Party).

The reform means that the national norm for how the social benefit amount is calculated will be tightened, which will affect all households that receive social benefits. But for large families with children, a restriction rule in social benefits is also proposed. It will apply from January 1, 2027.

For cohabiting parents, the amount received in social benefits per child will be reduced by 75 percent from the fourth child. For a single parent, the reduction will be 40 percent from the fourth child.

Several thousand

For example, cohabiting parents with five children who, according to the government's typical case, can currently receive 46,500 kronor per month in various benefits, will have their social benefits reduced by more than 8,000 kronor. The restriction rule from the fourth child will affect around 30,000 individuals.

This reform will lead to more children seeing their parents go to work, says Tenje.

Since smaller families with children are not covered by the restriction rule, the effects will not be as significant for them. For cohabiting parents with two children, the social benefits will be reduced by 800 kronor, according to the government's typical case.

At the same time, it is proposed that a job premium be introduced in 2026 for those who have lived on benefits and start working. The premium can be paid out for 18 months and corresponds to 15 percent of a salary of up to 25,000 kronor per month.

Requirements for benefits

Another part of the benefit reform is that everyone who moves to Sweden from January 1, 2027, will need to qualify for social insurance. Either by having been resident in Sweden for five years or by having worked for at least twelve of 24 months with a salary of over 20,000 kronor per month.

Sweden is no longer a smorgasbord for all the world's people, says SD's group leader Linda Lindberg.

The requirement applies to, for example, child benefits, large family supplements, housing benefits, sickness and activity benefits, and elderly support. Social benefits are not included.

Those who move here from other EU countries or from EEA countries are not affected in practice, since the period of residence in those countries is also counted.

The reform also means that all municipalities from July 1, 2026, must require social benefit recipients to participate in activities, such as practice-like or community-beneficial efforts.

Niklas Svahn/TT

Peter Wallberg/TT

Benefit cap

TT

Effects for example households:

A single parent with two children who receives income support (social benefits) of 25,000 kronor will receive 1,500 kronor less in benefits.

A single parent with five children who receives income support of 42,000 kronor will receive 6,700 kronor less in benefits.

Cohabiting parents with two children who receive income support of 29,700 kronor will receive 800 kronor less in benefits.

Cohabiting parents with five children who receive income support of 46,500 kronor will receive 8,200 kronor less in benefits.

Applies to 2027, rounded values, after tax.

Source: Government Offices

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By TTEnglish edition by Sweden Herald, adapted for local and international readers

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