Cash benefits

The level of financial social assistance is determined by household income and is subject to tax. The amount of the financial social assistance (cash assistance) depends, among other things, on the recipient’s age and any obligation to provide for children. For recipients under the age of 30, the amount of the cash assistance also depends on their level of education.

Wealth and income also affect cash assistance. The individual concerned cannot be awarded cash assistance if they or their spouse have any assets. However, the local authorities disregard amounts of up to DKK 10 000 per person. It is possible to be awarded cash assistance in the event of, e.g. absence due to sickness, unemployment, or dissolution of cohabitation. However, if an individual applies for cash assistance solely on the grounds of unemployment, they must also be available for work.

This means that they are obliged to turn up for interviews arranged by the local authorities; that they accept a reasonable offer of activation or work provided by the local authorities; and that they actively seek employment. If an individual is not available to work, the local authorities apply various sanctions that reduce cash assistance.

Financial social assistance is subject to tax. Assistance provided under the Welfare Act is either temporary or permanent. Temporary assistance is provided in the event of absence due to sickness, divorce or lack of job opportunities. Permanent assistance is granted to people who are not entitled to benefits under the Pension Act but have a permanent need for support to maintain themselves and their families.

Temporary assistance is granted depending on age, form of cohabitation and maintenance obligation, as a percentage of the sickness benefit. Single people with a maintenance obligation are granted the highest benefit (90 per cent of sickness benefit), while those under 25 living with their parent(s) are granted the lowest benefit (13 per cent of sickness benefit). Permanent assistance is granted at an amount corresponding to 60 per cent of sickness benefit.

The level of financial social assistance is determined by household income, and is a tax-exempt net benefit. The national government fixes the basic amount of financial social assistance annually, but the local authorities are responsible for payments. Cash assistance may be payable if the payment of other benefits is delayed. The local authorities may also grant preventive financial social assistance in order to help people cope with income difficulties. If a recipient repeatedly refuses to accept a job offer or training, the financial social assistance may be reduced by 20–40 per cent.

The level of financial social assistance is determined by household income and is subject to tax. The local authorities are obliged to pay financial social assistance to people unable to provide for themselves, i.e. those whose income falls below a certain level. The Ministry of Welfare has drawn up guidelines for what should be taken into consideration in connection with this award, but the basic amount is not fixed by the national government.

The level of financial social assistance is determined by household income and is a tax-exempt net benefit. The Ministry of Labour and Social Affairs has drawn up recommended guidelines for awarding support, including current expenditure on daily maintenance costs. These guidelines are a recommended starting point for local authorities’ calculations, which consider the applicants’ incomes and financial rights, as well as their essential day-to-day expenses. No upper limit is placed on the amount of the assistance, which may also take the form of a loan. In special cases, the social authorities may grant financial assistance to those who need help with overcoming or adapting to difficult circumstances, but who would otherwise not qualify for financial social assistance.

People drawing financial social assistance may be required to meet specified conditions. The primary purpose of these conditions is to help the recipients improve their situation, and thereby provide for themselves, by applying for relevant jobs and participating in guidance meetings, vocational courses and/or training and retraining measures, etc. Under the Act on Social Services in the Labour and Welfare Administration, people of working age with a considerably reduced capacity to work are entitled to participate in a fulltime and individual tailored qualification programme which include training, treatment and other measures aimed at qualifying participants for working life. The participants in the programme receives a qualification benefit. The qualification benefit is taxable and amounts to twice the basic amount of the Folketrygden annually for people over 25 years. People under 25 receive two-thirds of the full amount. The benefit is adjusted annually. A child allowance may be awarded as a supplement per working day.

The level of financial social assistance is determined by household income and is a tax-exempt net benefit. Financial social assistance, known as “financial assistance”, serves two purposes – it must guarantee a family a reasonable financial standard of living; and it must be preventive and rehabilitative. Local authorities usually offer unemployed recipients measures intended to prepare them for work. Those who are fit for employment but who do not apply for or accept offers of work, etc., will often lose their entitlement to assistance. Every year, central government sets national standards for subsistence expenses, e.g. food, clothing and consumer goods, and often rent and transport.

In calculating the amount of the financial assistance, a recipient’s total income is taken into consideration, including any maintenance allowance, child allowance, housing benefit, etc. If, for instance, the housing benefit increases by SEK 200 per month, the amount of financial assistance will be reduced accordingly. There is no upper limit, and financial assistance may also be granted on a loan basis, e.g. if a recipient expects to be in receipt of income that makes it possible to repay the assistance provided.