News item | 17-12-2024 | 2:33 PM
On Tuesday, December 17, the Senate approved two new laws that make housing benefit less complex. In addition, more tenants can apply for rent allowance from 2026. Most current recipients will improve after introduction: the first measures will apply from 2025. Approximately 1.5 million households currently receive housing allowance. Next year almost all these households will receive more housing allowance; average €12. In 2026, a group of 170,00 households will be entitled to housing allowance for the first time, on average for €175 per month.
The measures are included in the bills ‘Simplification of the rental allowance’ and ‘Rent allowance to improve purchasing power and simplify the scheme’. The government will release €215 million in 2025 for the simplification and improvement of the rental allowance and structurally €650 million per year from 2026.
Harmonization and work can pay off
As a result of the two new laws, the housing allowance for elderly and non-elderly people will be calculated in the same way from next year. This is not yet the case. Rent allowance recipients who are younger than the state pension age will therefore receive slightly more rent allowance. Families also receive more housing allowance if they are under the state pension age and pay a higher rent. This applies to all households of two or more people. The other housing benefit recipients already received this compensation.
From 2025, housing allowance recipients will be less likely to receive a lower housing allowance if they earn more. The phasing out of housing allowance will be more gradual. From 2026, the calculation will be further adjusted by introducing the linear phase-out. This provides better insight into what changes in the housing allowance as income increases.
More people will be entitled to housing allowance
In 2026, a new group will be added that will be entitled to housing allowance: tenants with a lower income and a higher rent. These tenants are entitled to housing allowance in terms of income, but do not yet receive this because their rent is above the maximum rental limit. From 2026, they can, just like tenants of a social (regulated) rental home, apply for rent allowance on the rent portion up to € 900.07 (amount 2025). This becomes possible due to the abolition of the maximum rental limits as a condition for the right to housing allowance. This means that 170,000 households can receive housing allowance, for an average of €175 per month.
More young people under the age of 21 will be entitled to housing allowance. They can apply for housing allowance if their rent is higher than €477.20 (2025 amount). Now this is only possible if the rent is lower than €477.20. The rental allowance applies to the part of the rent up to €477.20.
Young people aged 21 and over are entitled to full housing allowance. They now only get this from the age of 23. This new age limit is equal to the statutory minimum wage.
About 20% of current recipients will receive less housing allowance in 2026, on average €9 per month. These are tenants who are currently still reimbursed for common service costs, but soon this will no longer be the case. Apartment residents sometimes pay these fees for common services in apartment buildings. For example, for cleaning and energy of common areas such as the elevator or a gallery, and the work of a caretaker. The (partial) reimbursement for four types of common service costs will no longer apply. Other service costs are already not eligible for housing allowance reimbursement.
The rental price for the rental allowance will be equal to the basic rental price after the removal of the service costs. This is included as standard in the rental contract.
Future changes in the benefits system
The benefits system offers income support to the people who need it (targeted) and at the time they need it (timely). In recent years there has been much talk about the desire to simplify benefits. The adopted laws on housing allowance are a major step in this direction. Both laws also improve the current implementation.