New arrangement
On 1 January 2017, new legislation on housing benefit will come into force. The aim of the new law is to reduce the housing costs of low-income tenants by paying housing benefit and to reduce inequality in the housing market. From 1 January 2017, older applications for housing benefit will lapse and the Employment Service will handle housing benefit claims from that time. Local authorities will continue to handle the processing of Special Housing Support.
Notice regarding the new arrangement for housing benefit payments (formerly rent allowance)
On 1 January 2017, Act No. 75/2016 on housing benefits will come into force, repealing Act No. 138/1997 on rent subsidies. The aim of the new Act is to reduce the housing costs of low-income tenants by paying housing benefits for the rent of residential accommodation and to reduce inequality in the housing market. Until now, the local authorities have been responsible for processing housing benefit payments to individuals, but From 1 January 2017, older applications for housing benefit will expire. and the Employment Service will handle housing benefit from that time. Local authorities will continue to handle the processing of special housing support (formerly special housing benefit).
Key changes in the new legislation on housing benefits
The main change is that the basic amount of housing benefit increases for larger households. A parent who has their child living with them for a minimum of 30 days a year can also register the child as a member of the household, even if the child is legally resident with the other parent. Housing benefit is also both income- and capital-related, meaning that all income and capital of the applicant and household members aged 18 or over are combined to form a joint income band and a joint capital band. These are then used to reduce the housing benefit if they exceed the capital thresholds. The exemption thresholds also increase depending on the number of people in the household. Housing benefit can be up to 75% of the rent.
Applications for housing benefit
Applications for housing benefits must be submitted to the Employment Authority to be eligible for payments from 1 January 2017. Please note that the application process for housing benefits with the Employment Authority is electronic. Further information regarding housing benefits can be found on the website. www.husbot.is and at the Employment Service. Please note that the application deadline for the next January is 20 January 2017.
Special housing support
Local authorities will continue to pay out special housing support, and applications for this support must be made to the local authorities. Special housing support is intended for those families and individuals who are struggling to secure housing due to low wages, a heavy burden of dependants, or other social difficulties. All the conditions for general housing support must be met to be eligible for special support. See more here
New system for housing benefit payments (formerly rent supplement).
On 1 January 2017, the new Act No. 75/2016 on housing benefit comes into force, and the old Act No. 138/1997 on a supplement for rented accommodation is repealed. As of 1 January 2017, the payment of housing benefit is handled by the Labour Office (Vinnumálastofnun). Until now, the housing supplement for rented accommodation was paid by the municipalities, and as of 1 January 2017, applications for this supplement submitted to them will become invalid.
More information about the housing supplement can be found on the website. www.husbot.is at the Employment Office. New applications for housing benefit should be submitted electronically via www.husbot.is. Please note that the deadline for submitting applications for January is 20 January 2017.
The municipalities will continue to handle special housing support.