She has received increased social security benefits this year, but at the same time loses several thousand kroner because she no longer receives housing benefit and extra electricity support. – The fact that I lose this money means that I have to tighten up even further, says Kristiansen to news. She was a store manager in Tromsø, but had to quit her job when her health failed. Since January, she has been on employment verification allowance (AAP) and has been forced to tighten her finances. – I am a single mother of two children aged six and ten. They are at an age where leisure activities are becoming more and more relevant, says Kristiansen, and continues: – I know it in my mother’s heart. We cannot go to a water park or take many of these excursions that the children would like to have. The explanation that increased social security means less to worry about for some is not entirely simple: Social security benefits were adjusted upwards by 4.77 per cent from 1 May, in line with expected wage growth. The basis is the national insurance basic amount (G). But the limit for applying for housing benefit has not increased at the same pace. It has been adjusted by 2.7 per cent on 1 June, on the basis of last year’s price increase. Extreme price growth The consequence is that around 1,000 households can no longer apply for housing benefit, because they receive too much in disability benefits, AAP or other benefits. PRICE GROWTH: Rising prices make everyday life more difficult for many social security recipients. Photo: Private – For me, this means that I am now NOK 109 over the limit to be able to apply for housing benefit, says Kristiansen. And a price increase of 6–7 percent makes the situation extra bad right now. – There is high inflation, so things cost more than we are used to. I can feel that those thousands had made a difference to me. She is now starting her studies and hopes to get back to work again. – I think very few of us who receive benefits from Nav would like to be in that situation. I want to be healthy and work. It is a loss, says Kristiansen. Also losing power support And on top of it all comes an additional problem exactly in the current situation. The government has linked an additional electricity subsidy to the housing allowance. – When you lose housing benefit, you also lose electricity support. Then it is once again the case that those who have little before have even less, says Kristiansen. Recipients of housing allowance will – regardless of place of residence – receive NOK 1,000 in extra electricity allowance in October and NOK 1,500 in November and December. In addition, there is NOK 150 per person in the household, according to Husbanken. This electricity subsidy comes on top of the general scheme for households. – Poverty trap Linn Ida Kristiansen contacted the AAP action to get clarity on the regulations. She is not the only one. The system is a kind of poverty trap for many, believes Rødt’s Mimir Kristjansson. POVERTY TRAP: Rødts Mimir Kristjansson. Photo: Rødt – For a good number of people with disability benefits and others in the Nav system, the reality is that if you are tipped over that limit, you’re in for a big bang, he says to news. The limit he is referring to is therefore the income limit to be able to apply for housing benefit. – There will then be a few hundred extra pounds on the account. But then you will lose the opportunity to apply for housing benefit and electricity subsidy and thus in reality lose many thousands of kroner. – But this happens every year, is it any worse this year than other years? – It is extra bad this autumn because the situation is so acute in many people’s private finances. Those on disability benefits have, like ordinary workers, received much poorer advice since last year. – Just getting it wrong The Ministry of Municipal Affairs confirms that the increase in the basic amount of the national insurance this year was greater than the increase in the income limit for housing benefit. As a result, some households who were entitled to housing benefit before the upward adjustments are excluded, according to the ministry. State Secretary Nancy Charlotte Porsanger Anti (Sp) believes it would be wrong to link disability benefit and housing benefit directly together. FLEXIBLE: Secretary of State Nancy Charlotte Porsanger Anti. Photo: Allan Klo / news – The rates in the housing benefit regulations are adjusted annually against the price increase in the past year. The social security benefits are adjusted according to what is expected as wage growth in the future, she says to news. – What do you have to say to those who get more in social security, but who lose housing benefit and electricity support and thus have less to worry about? – No matter where the roof goes, there will always be someone directly above or directly below. Anti says the housing benefit scheme is “very flexible”, and that you get people into it quickly when you need it. Consideration of pace was also the reason why extra electricity support was attached to the housing benefit, she explains. – It will only be wrong Of around 1,000 households that fall out of housing benefit, just over 600 are on disability benefits, according to Husbanken. The households this applies to have a higher income than the minimum disability benefit. They have received relatively little housing benefit (less than NOK 300 per month), according to the ministry. CRITICAL: AAP action leader Elisabeth Thoresen. Photo: Tuva Skei Tønset / news The leader of the AAP action, Elisabeth Thoresen, believes that the scheme with housing allowance must be changed. – The rates to be able to receive housing benefit must be regulated every year and in line with the social security settlement. Anything else will just be wrong, she says to news. Work is now underway to review the rules for housing benefit. Thoresen believes there is a need for a comprehensive review of the Nav rates. – Actually, those who receive state benefits from Nav should be paid enough to be able to live dignified lives without applying for additional housing benefit. Kristiansen in Tromsø also has a piece of advice for the politicians. – What they can do is to see that the benefits increase steadily. When they increase the basic amount in the national insurance, they should look at what other things this will affect. Will it affect those who receive housing benefit, for example?
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Linn Ida received a little more social security. Then she lost housing and electricity allowance – news Norway – Overview of news from various parts of the country
