Dark clouds over Housing Benefit

The calculation of the coalition agreement of the Central Planning Bureau (CPB) shows that, according to the government's plans, many rents will deteriorate in the coming years.

A lot will change in the housing allowance. There are some minor improvements. However, the renters also suffer greatly. Although rent is no longer available to many low-income people who receive Housing Benefit.

 

More people are entitled to Housing Benefit

The maximum rent for which you are entitled to Housing Benefit will disappear from 2024. As a result, low-income people with rents above the 'rent benefit limit' (which is € 879,66 this year) can still claim Rent Supplement. This is good news for tenants with low incomes and skyrocketing rents. Woonbond has been involved in this for years. It is also more likely that young people will be entitled to Housing Benefit. The age limit at which young people can apply for regular housing allowance will be lowered from 23 to 21.

 

There is no rent supplement on the actual rent

At the moment, the Rent Supplement is based on the actual rent someone is paying.

Part of this rent is compensated for on the basis of the rent and the tenant's income. The coalition agreement says that the government wants to start in 2025 with a fixed rent instead of real rent. The rent is € 548 a month, says the CPB. This means that beneficiaries of the Rent Benefit with the lower rent will benefit, but the lessees with the higher rent will lose. So they can easily get into trouble because some Housing Benefit is no longer available.

 

Own contribution up

Each beneficiary of the rent pays a part of the rent 100% himself. Only above this amount is the rent (partially) refunded by the rent supplement. Also in this case, the exact amount of own contribution depends on the amount of income and rent. The government wants to increase its own contribution. This means that all rent beneficiaries will have to pay more out of pocket and will receive less compensation. In 2024, the personal contribution to Housing Benefit will be increased by EUR 2 per month. In 2025 with another 2 euros.

The costs of the services are no longer included in the rental allowance

The cost of the service will also no longer be covered by the rental allowance. You will now receive Housing Benefit on your 'Calculated Rent'. The rental price plus a part of the cost of the service. From 2024, service costs can no longer be counted.

These costs are therefore no longer compensated by the rent supplement.

 

Main affordability concerns

Woonbond is very concerned about the impact of low subsidy housing benefit plans. According to a study by Nibud on behalf of Woonbond and Aedes, rent is often not affordable for them. The rent supplement needs to be increased to improve affordability for these tenants.

Source: www.woonbond.nl