As the new year unfolds, thousands of Czech residents are set to face changes in their housing benefits, resulting in expected decreases ranging from 1,400 to 2,800 Czech koruna. The reduction stems from a decrease in the normative, or standards, from which housing benefits are calculated. This alteration is poised to render many individuals ineligible for the benefit, while others will experience a shrinkage in their financial support.

The housing norm reductions are a consequence of the conclusion of an increase that was approved for 2022 and 2023 due to the prevailing energy crisis. Jakub Augusta, spokesperson for the Ministry of Labour and Social Affairs, notes that the situation with energy is now expected to improve, leading to the adjustment in housing norms.

While the Ministry anticipates that only a small number of recipients will lose their housing benefits, the sheer volume of households receiving the benefit—nearly 267,000 as of October 2023—means that even a modest percentage loss equates to thousands or tens of thousands of affected individuals and families.

For instance, if only four percent of recipients are impacted, this would translate to over 10,500 households facing changes in their housing benefits. Additionally, many more families are expected to witness reductions in their financial support.

Lenka Desatová, Chairwoman of the Council of Seniors, emphasizes the significant impact of these changes. Despite stabilized energy prices, which remain higher than pre-crisis levels, many individuals are grappling with the expiration or conclusion of fixed rates.

Alena Zieglerová from the Institute for Social Inclusion acknowledges the need for adjustments, stating, “It is necessary to slow down the circle of applicants for the benefit so that it is not too high in income. When the norms are slowed down, high-income people will not reach it.”

The Ministry, currently ruling out another increase in norms, emphasizes ongoing analysis of the situation and a commitment to respond appropriately. With a broader focus on revising the benefits system, the Ministry aims to strike a balance between financial sustainability and meeting the needs of vulnerable individuals and families.

Article by Prague Forum