On Wednesday, the government and the Sweden Democrats announced that they want to introduce a cap on social benefits. In addition to this, new arrivals will have to qualify for welfare, for example by living in the country for at least five years.
The government expects that a total of 5,000 families will be affected by the cap on social benefits.
As a society, you don't save a lot of money on this, but for each individual or family, it can have very large effects, says Olof Åslund, professor of economics at Uppsala University.
Hoping for more in jobs
The proposal means, among other things, that for cohabiting couples with five children, social benefits can be reduced by just over 8,000 kronor per month.
The government hopes that the changes will make more people find jobs faster. According to Åslund, research has also shown such connections.
When Denmark reduced benefits for new arrivals in 2002, it led to more people in employment, although the effect was "moderate and temporary", but it also led to effects that the Danish government "absolutely did not want", according to Åslund.
Children affected negatively
Children, who cannot be blamed for their parents' possibly lack of effort to find work, were affected negatively. Among young people, one saw worse school results and increased crime, he says.
According to Åslund, reduced benefits will likely not affect people who are already far from the labor market. On the other hand, it can make those who are close to getting a job tip over the edge.
For those who are farthest away, you can reduce the benefits as much as you want without them entering the labor market, he says.
Johanna Ekström/TT
Fact: Benefit reform
TT
The national norm for social benefits is tightened
Municipalities can no longer make their own additions to the norm
A limitation rule in social benefits from the fourth child is introduced in 2027
Then the social benefit is reduced by between 40 and 75 percent per child
The size of the reduction depends on whether the custodian is single or cohabiting.
A job premium is introduced for those who go from benefits to work
The premium applies for 18 months and corresponds to 15 percent of the salary up to 25,000 kronor
The premium is introduced on July 1, 2026
An activity requirement for social benefits will apply in all municipalities
From 2027, it is required that you have lived in Sweden for five years to be entitled to various benefits. Social benefits are not included.
You can also qualify by having worked for at least 12 of 24 months
The salary must then be at least 20,000 kronor
Source: Ministry of Social Affairs
