The Danish government will implement temporary measures to counter the risk of homelessness arising from the recent cash benefit reform. Prime Minister Mette Frederiksen announced the decision, stating that a solution will be found for cash benefit recipients who may face housing loss due to reduced benefits.

Frederiksen affirmed her agreement with Foreign Minister Lars Løkke Rasmussen’s call for preventive measures against homelessness resulting from the reform. She emphasized the government’s commitment to addressing the issue.

According to Frederiksen, the cash benefit reform is beneficial for many families with children, increasing their financial resources. However, she acknowledged the current shortage of affordable housing in some areas of Denmark, necessitating a temporary solution to prevent homelessness. The government is actively negotiating a new housing policy. The framework and specifics of the temporary measures remain unclear.

The cash benefit reform, effective since July 1st, has led to reduced monthly benefits for thousands, prompting concerns about potential homelessness due to decreased disposable income. Frederiksen stressed that the reform was not intended to cause homelessness.

While Minister for Employment Kaare Dybvad Bek has previously stated that the reform is not expected to increase homelessness overall, he acknowledged the possibility of some individuals being negatively affected by reduced benefits. He also noted that some families with children will receive more money as a result of the changes.