Denmark’s new welfare reform has left at least ten people homeless in Copenhagen, with city officials warning that more could soon follow. Lawmakers behind the reform now admit they did not expect such severe consequences.
Homelessness linked directly to welfare cuts
According to the City of Copenhagen, ten people receiving cash assistance have already been evicted from their homes since Denmark’s new welfare reform took effect on July 1. Another 27 eviction cases are underway. The city considers these incidents a direct result of the changes to the country’s cash assistance program.
The reform aimed to simplify the welfare system and motivate more people to find work. However, it has reduced payments for single adults and removed a special housing subsidy that previously helped people in cities with high rent costs. While families with children have seen slight increases, individuals without children have taken steep cuts.
Officials surprised by the sudden impact
Politicians from both the Socialist People’s Party (SF) and the Social Liberal Party (Radikale Venstre) supported the reform when it was passed. They now say they did not anticipate it would push people into homelessness. Several key members insist that the reform’s purpose was to help low-income families, not to create new social problems.
Because Copenhagen was one of the hardest-hit municipalities, local housing organizations have urged the government to revisit the changes. Experts point out that fewer benefits combined with the loss of housing assistance were bound to put many people in danger of losing their homes.
You can read more about related housing policy efforts in Denmark’s recent housing reforms.
Breaking down the new welfare structure
Under the reform, new cash assistance rates took effect in Denmark’s welfare system:
– A minimum rate of 6,789 kroner per month before taxes
– A base rate of 7,205 kroner
– A higher rate of 12,498 kroner
Other benefits include a leisure allowance of 450 kroner per child (up to three children) and compensation for certain medical expenses. Recipients on the lower rates can earn up to 5,000 kroner per month from part-time jobs without losing benefits.
The controversial part was the removal of the “housing supplement” for those struggling with rent in major cities. That change alone removed over 32 million kroner in direct support for Copenhagen residents.
Government announces limited emergency help
The Danish government recently set aside 15 million kroner to help those most affected by the reform. However, details about how these funds will be distributed remain uncertain. Politicians from the governing parties have acknowledged that the measure may have come too late for those already forced out of their homes.
You can find additional background on the government’s policy shift in this national report.
Warnings ignored despite early alerts
Before the law was passed, 18 nonprofit and social organizations publicly warned that ending the housing supplement would cause a spike in homelessness among vulnerable citizens. In 2024 alone, more than 14,000 people received the benefit nationwide, amounting to over 170 million kroner.
Despite those warnings, supporters of the reform argued that the new system introduced several compensatory programs and an extra 100 million kroner annually for targeted welfare measures. They insisted it would not lead to evictions if managed properly.
Yet the outcomes have already proven otherwise. Social services in Copenhagen now monitor around 1,800 residents whose benefits were reduced by an average of 2,791 kroner per month. The city has described the situation as alarming and likely to worsen if no urgent response is implemented.
As these issues unfold, Danish civil society continues to focus on housing rights and socially sustainable welfare policies, highlighted during national events like Denmark’s Homeless Day, where citizens and experts discuss stronger protections for those at risk.
What happens next
The Social Liberal Party and SF are now pressing the employment minister to call an emergency meeting to find a long-term fix. Copenhagen’s local authorities have also demanded new support packages to prevent further evictions in the coming months.
Whether Parliament agrees to revisit the reform is still uncertain. For now, the focus is on how quickly relief funding can reach those already affected. Danish media and policymakers alike are watching to see whether the government’s welfare reform will stand as planned or face fundamental revision in the near future.
Sources and References
DR: SF and Radikale criticize welfare reform after homeless rise
DR: Government changes stance on welfare reform
The Danish Dream: Denmark’s housing reforms prevent social displacement
The Danish Dream: Denmark Homeless Day highlights voting and housing rights
