Factsheet for measure
NO-2022-1/2770
–
Updated
– measures in Norway
Temporary increase in housing allowance to cover high electricity costs
Midlertidige endringer i bostøtten
utbetaling til mottakere av bostøtte som hjelp til å
dekke høye strømutgifter
Background information
The Ministry of Local Government and Modernisation recognized the high energy prices that were brought on by the dry weather, low reservoir levels, and the record high prices for coal and gas. The situation called for measures to support vulnerable groups.
The housing allowance is intended to ensure suitable housing for people with low incomes and high housing costs. It is a means-tested entitlement scheme that covers everyone over the age of 18, except students and those doing military service. The Norwegian National Housing Bank (Husbanken) manages the housing benefit and can implement temporary changes to the regulations and pay out additional support to recipients.
Content of measure
The Ministry of Local Government and Modernisation decided to use the housing allowance scheme to support low-income households effected by high energy prices. In October 2021, 77,300 households received housing benefit in Norway. The average income of these households was NOK 157,600 (€15,760) a year, and average housing expenses corresponded to NOK 106,200 (€10,620) a year. Each household received an average of NOK 2,843 (€284) in housing benefit in October 2021. One in three households that received housing benefit had income from a pension or social security, nine in ten lived in rented accommodation and two in three households consisted of just one person (Prop. 46 S (2021–2022), p. 2).
In December 2021, the government proposed that the housing allowance be temporarily extended so that approximately 50,000 more households could receive housing allowance. The rates were also increased. The extra allowance meant to cover high electricity costs is NOK 1,500 (€150) per month with an additional NOK 150 (€15) per person per month to households consisting of several people. This benefit was given for the months January to May 2022 and will be continued for the months October to December 2022. In the state budget 2022, the allocation for housing benefit was increased to remedy the situation with high electricity prices for people with low incomes.
Updates
The following updates to this measure have been made after it came into effect.
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11 May 2023
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In the government budget for 2023, the temporarily increased rates for housing benefit was continued until June 2023. This means that more people will receive housing benefit and that many people will receive more housing benefit. In addition, extra support for electricity costs was given for the period December to April 2023. In the revised government budget, presented in May 2023, the government proposed to continue the temporarily increased rates for housing benefit until the end of 2023. Along with the housing benefit, the government proposed to add extra payments for high electricity expenses in for the period October to December, with a total of NOK 4,000 (€339).
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Use of measure
No information.
Target groups
Actors and funding
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Actors
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Funding
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National government
Local / regional government
Public support service providers
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement as case not in social partner domain
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No involvement as case not in social partner domain
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: N/A
Involvement
No information on social partners' involvement.
Views and reactions
No information on social partners’ view.
Sources
