Government plans gradual reduction of rent subsidy in Sweden

The government plans to gradually reduce the rent subsidy over several years. This proposal will be presented to Parliament this autumn by the Ministry of Finance.

Last December, the government requested an additional five million kronas for rental subsidies for the current year. Since the financial budget was made in September, there have been several interest rate increases.

The government anticipated that residents would receive a total of 153 million kronas in rent subsidies this year. However, homeowners pay fees on the interest they receive, contributing to government revenue. This income is estimated at 68 million kronas for the year, leading to a net expenditure on rent subsidies of 85 million kronas.

Since 2014, the rent subsidy has been set at 35 percent. Since 2018, assistance has been provided for interest payments, with a maximum limit of 100,000 kronas.