Denmark’s cash assistance reform is under fire after several Copenhagen residents lost their homes due to reduced benefits. Experts question whether the minister’s proposed local subsidies can actually help those most at risk.
Controversy Over Cash Assistance Reform
The Danish government’s recent welfare reform has sparked sharp criticism after ten residents in Copenhagen were evicted for failing to pay rent. An additional 27 tenants are facing possible eviction. The reform reduced key housing benefits for cash assistance recipients, leaving some without enough income to stay in their homes.
Employment Minister Kaare Dybvad placed the responsibility on Copenhagen Municipality, arguing the city could have used existing subsidy programs to help struggling tenants. However, welfare experts question whether his proposed options can be used in such urgent cases.
Experts Doubt the Minister’s Defense
Lars Benjaminsen, a senior researcher at the National Research and Analysis Center for Welfare (VIVE), reviewed the minister’s claims. According to his analysis, the two support schemes Dybvad mentioned cannot be applied in emergency eviction situations.
The first program, the “Fund for Mixed Cities,” established in 2021, aims to create more affordable housing by offering annual rent subsidies of up to 15,000 kroner. However, it targets people already experiencing homelessness who are moving into new public housing units. The fund was not designed to cover existing rent arrears or prevent immediate evictions.
As a result, the scheme cannot assist residents already behind on rent. The fund only reduces future rent for new tenants in designated affordable units. Compounding the issue, Copenhagen has no vacant apartments available under the program, and 59 people are currently on the waiting list.
Legal Barriers to Emergency Aid
The second option mentioned by Dybvad, a clause in the Active Social Policy Act, does allow local authorities to provide temporary housing support to residents at risk of eviction. Yet, the law specifies that such support can only be used if it “can prevent eviction in the long run.”
Benjaminsen points out that since the benefit cuts are permanent, the city cannot use this clause repeatedly. Once a person’s welfare payment no longer covers rent, the underlying problem persists each month. That makes the temporary support inappropriate under current law.
This interpretation aligns with Copenhagen’s decision not to apply the clause. The city argues that it cannot provide monthly rent coverage indefinitely under legislation meant for one-time emergencies.
Significant Loss of Rent Subsidies
The reform also eliminated a national rent support program worth more than 170 million kroner annually. In Copenhagen alone, that change removed over 30 million kroner in yearly aid. According to city data, around 1,800 residents receiving cash assistance are now enrolled in social services support, each losing an average of 2,791 kroner per month in benefits.
These figures have intensified criticism of the government’s strategy to cut costs while shifting responsibility to municipalities.
Minister Declines to Comment
Despite repeated requests, the Employment Ministry declined interviews about the issue, directing inquiries to the minister’s earlier statements. Local officials expressed frustration, arguing that the government seems unaware of the legal limitations municipalities face. Social Affairs mayor Karina Vestergård noted that Copenhagen is already applying every legal option available to prevent homelessness.
Possible New Support on the Horizon
Meanwhile, the government has hinted at introducing an additional 15 million kroner in emergency aid. Culture Minister Jakob Engel-Schmidt has mentioned the initiative but has yet to release detailed distribution criteria.
Until official guidelines are published, city officials say they cannot act on the promise. For now, those affected by benefit reductions continue facing the risk of losing their homes, while public debate grows over the balance between national welfare policies and local responsibilities.
Sources and References
The Danish Dream: Danish government plans tax cuts to lower living costs
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DR: Kaare Dybvads forsvar for kontanthjælpsreform under pres
