Bill on subsidy cap finalized - 150,000 affected

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Bill on subsidy cap finalized - 150,000 affected
Photo: Henrik Montgomery/TT

The government has completed a bill to introduce a benefit cap. Nearly 150,000 households are expected to receive lower social benefits. This could mean several thousand Swedish kronor less per month for large families.

On Tuesday, the government will make decisions on two legislative recommendations that are part of the government's major benefit reform.

One means that the national standard for social benefits will be tightened from 1 January 2027. Municipalities will then no longer be allowed to make their own extra additions to the standard. In addition, a restriction rule for social benefits will be introduced from the fourth child onwards.

It is especially in households with many children that it is not worthwhile to go from benefits to work today, says Minister of Labour Johan Britz (L).

According to Minister of Social Insurance Anna Tenje (M), the proposals are expected to result in nearly 150,000 households receiving lower social benefits.

Thousands less

In real terms, this could mean several thousand less for large families with children each month, according to the typical cases presented by the government. For people living together with two children, social benefits could be reduced by 800 kronor.

When asked how the government views the risk of increased child poverty, which could make it easier for gangs to recruit children and young people to commit violent acts, Tenje replies:

The best vaccination for escaping exclusion is that your parents have a job to go to, and that you yourself get through Swedish preschool and school.

The second legislative recommendation means that a national activity requirement will be introduced to receive social benefits from 1 July 2026. Municipalities will be obliged to offer a meaningful activity full-time. Those who do not participate in activities without an approved reason will receive no or reduced social benefits.

“Serious deterioration”

The Tidö parties also present "measures against the shadow society". Those who are illegally residing in Sweden will no longer be able to receive financial assistance from the municipality.

There may be exceptions to what is called emergency assistance, but it is truly exceptional, says Oscar Sjöstedt (SD).

A third part of the benefit reform involves immigrants having to qualify for a range of different benefits and allowances. A bill on this will be presented this spring.

Save the Children is critical of the subsidy cap, which it believes violates the Convention on the Rights of the Child. The proposals are considered to "seriously worsen" the situation for those who already live in the greatest economic vulnerability.

"When the benefit cap was introduced in Denmark, this has also led to increased crime," writes Erik Ulnes, political advisor at Save the Children.

The organization believes that the national standard should be raised rather than tightened.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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