In the new revised national budget, the government proposes to reduce the allocation for housing benefit by NOK 800 million. The reason for this is that employment has increased and thus there is less need for extra housing support. The government has also found that the extra funds of 360 million kroner, which were to help housing benefit recipients with sky-high electricity bills, do not hit as many.
Anne (31) is worried that the government’s proposal to cut housing benefits will go far beyond her already this week.
– The rates for housing benefit are already very low. That is why I am terrified of losing my housing benefit, she says.
Anne grew up in Drammen and lives in Buskerud. With a journeyman’s certificate in the restaurant and food industry, she worked at a restaurant from 2016 until October 2020. Then it said abrupt stop, and the body did not want more.
– I went on a mental bang. During these years I have had occasional jobs. It has been challenging to keep a job for a long period of time, she explains.
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Depending on housing benefit
Since October last year, she has been on work assessment allowance (AAP), after being on sick leave for one year. With a sudden drop in income of 260,000 a year, she currently has a minimum rate of AAP, which means that she is paid around 13,500 kroner after tax every month.
In addition, she has been granted NOK 3,200 in housing benefit. The deductible has been temporarily strengthened with electricity support which includes NOK 1,000. When the electricity subsidy lapses, she assumes that the housing subsidy will be reduced.
– After I became ill and my income was greatly reduced, I moved into an old house in the country with a cheaper rent. I pay 7,500 kroner in rent plus electricity, and it has been very expensive, she says.
Long treatment
Anne goes for treatment for the diagnoses PTSD and borderline, after massive neglect and physical and psychological violence in childhood. Before she can clarify when she can possibly start working again, and / or apply for disability benefits, she must first undergo treatment and work-oriented measures.
– That it can take a long time before I get well enough to work, means that NAV does not want to push me into work. This means that I can neither afford any financial security nor afford anything extra in everyday life. I live on the cheapest of the cheapest. If I get a high electricity bill, I have to buy three 18-packs of eggs to get enough food in me. I will also have to count on the crowns if I need a top or a pack of socks. That I do not have the opportunity to buy something extra is energy-losing, she says.
– I think it is bad that the government is considering cutting housing subsidies when the state rakes in millions on expensive electricity costs. The prices of absolutely everything have also risen sharply. That they should now reduce their support for the very weakest in society is very unreasonable. I would like to see Støre & co live on 13,500 kroner a month. Of the money, you must pay rent, electricity and have money for subsistence. It is not durable for a long period of time. I get very provoked, most of all because they do not know what it is like to live as a poor person in Norway, she says.
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Stay indoors
Anne, who moved to a more rural place to get healthier, can neither afford to have a car nor to get a driver’s license.
– To save on the food budget, I have just started growing my own food in the vegetable garden behind the house I live in. Otherwise, I mostly keep to myself indoors. Even though I can do physical work, it takes very little before I am completely exhausted due to my own psyche, she explains.
– At least I’m safe and sound here. I hope I can use the forest more in the future. Due to health, I do not have the energy for it right now.
Concerned about the economy
Anne worries about her own finances and what the future holds.
– I do not get healthier from constantly walking around worrying. I was very anxious from before. It is estimated that I will need treatment for several years. Both NAV and my psychologist are in doubt about when I want to be ready for working life.
– My biggest wish is that the government can increase the rates for housing benefits, so that you get the opportunity to live. I do not treat anyone to the life I live now. Most of all, I want to get well so I can start working again.
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– Fewer have applied for housing benefit
Minister of Local Government and District Affairs Sigbjørn Gjelsvik emphasizes to Nettavisen that the government has not cut housing subsidies.
– The reason why the housing allowance is now reduced by NOK 800 million is that fewer than estimated have applied for support. This is not because the regulations have become stricter, but is due in part to the fact that the labor market has improved and more people have found work. It also appears that the remaining recipients have higher-than-expected incomes. Therefore, the estimates for how much support will be paid out this year are reduced, says Gjelsvik.
– Totally unreasonable
Grete Wold in SV tells Nettavisen that she thinks it is completely unreasonable for the government to take 800 million from those who struggle the most.
– Everything becomes more expensive, without increasing the housing allowance. The government must find cover elsewhere than among those who already live on a minimum. SV believes that the housing benefit must be increased, both so that more people are entitled to housing benefit and that the amount is increased for the individual, she emphasizes.
– Now that we have received a report on the housing allowance, which slaughters the current scheme, it is not appropriate with a cut in the housing allowance. On the other hand, it means that the scheme must be completely revised and strengthened, something that SV has worked for for many years. Then it is extremely unmusical and incorrect to take the money from those who have the least now.
At the same time, Wold understands that the government believes that this is not a real cut, but that it is really about the fact that there are not enough people who need the support. Now that the government has allocated NOK 800 million to the group that has the least, it should still be given to this group and not raised for other projects.
– Leads to more poverty
– In the extreme, the cut will lead to some falling below the poverty line. We have many people who are struggling very hard. Those who initially receive funds for housing benefit have a very low income. When you also have to cut the housing allowance, there is a risk that people will be put on the streets. This is often about people who never get to participate in any activities ever. It has something to do with people’s physical and mental health, she says.
Helge André Njåstad also explains to Nettavisen that he reacts strongly to the government’s reports of cuts in housing benefits.
– I think everyone sees that the electricity bill is still demanding for people. Therefore, it is unwise of the government to cut the scheme. It appears unsocial. They should rather arrange the scheme so that it meets Anne and others who are in demanding situations. Exactly how the government should set up the scheme to use up the 360 million that the Storting has set aside for the purpose, they must return to. Instead of using the money as intended, they frame the schemes so narrowly that the state saves money. It is anti-social, says Njåstad.
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