The Swedish government, in collaboration with the Sweden Democrats, has announced significant changes to the social welfare system, including a benefits cap and stricter eligibility requirements. These reforms, part of the Tidö Agreement, aim to reduce dependency on benefits and encourage employment. Critics argue the changes could increase poverty and segregation, particularly affecting large families.
Swedish Government Proposes Major Cuts to Family Benefits
Swedish Government Proposes Major Cuts to Family Benefits
The Swedish government, alongside the Sweden Democrats, has unveiled plans for a benefits cap, stricter requirements for accessing social insurance, and a job bonus, as reported by Expressen.
Prime Minister Ulf Kristersson's Moderate Party has long advocated for a benefits cap and a job bonus. These measures are part of the Tidö Agreement between the Moderates, Christian Democrats, Liberals, and Sweden Democrats, and have been described as some of the most challenging to agree upon. Expressen revealed these measures before Wednesday's press conference.
During budget negotiations, the benefits cap has caused friction among several parties, with significant criticism from the Sweden Democrats, who accused the Moderates of retreating from their reforms due to widespread criticism from various stakeholders and political opposition.
Critics argue that families with many children will be severely affected by the changes, raising concerns about increased segregation and child poverty.
– This is not a benefits reform but a poverty reform. It will not help anyone. Instead, it will make vulnerable families even more susceptible, says Janine Alm Ericson, the Green Party's economic policy spokesperson.
Benefits Cap
A benefits cap will be introduced from the start of 2027. This means, for example, that a family with two parents receiving social assistance and five children could see their income reduced from today's total of over 46,500 SEK in benefits to 38,000 SEK, a decrease of 8,200 SEK each month. 145,000 households will be affected by the benefits cap.
Additionally, a new, lower national standard for social assistance will be implemented to prevent municipalities from raising benefits above the Tidö parties' level.
A requirement for full-time employment for those receiving social assistance will also be introduced from July 1, 2026. This could involve learning Swedish, participating in internships, rehabilitation efforts, or education to become more employable. Meanwhile, children in these families will be allowed more hours in preschool.
Anna Tenje (M), the Minister for Social Insurance, argues that social exclusion has significantly increased under the previous government.
– Our response is to get people into work. It must be more rewarding to move from benefits to employment. Society as a whole must impose greater demands, says the Minister for Social Insurance at the press conference.
The Minister for Social Insurance claims that today, it is primarily families with many children where it is not profitable to work.
Municipalities will be compensated for increased expenses with over two billion SEK per year.
Five Years in Sweden for Benefits
In addition to the benefits cap, a gradual qualification into the Swedish social insurance system will be introduced from January 2027.
Only after a person has lived in Sweden for five years will they be eligible for child benefits, additional child allowances, housing benefits, sickness and activity compensation, and elderly support, among others.
Some exceptions to the five-year rule will be made, such as for those coming to Sweden for a high-paying job, who can access benefits after six months.
The goal of encouraging more people to leave benefit dependency and take a job, even if it is low-paid, will also be stimulated with a special job bonus. Those moving from benefits to work can receive up to 3,750 SEK extra for up to 18 months. It will not be possible to live on benefits and receive the job bonus simultaneously.
– With the job bonus, incomes will increase further if one leaves social assistance, says Johan Britz (L), Minister for Employment.
Reducing Benefit Dependency
The Tidö parties' measures aim to reduce benefit dependency among groups that have come to Sweden from other countries. They also aim to tighten rules to reduce people's desire to move to Sweden.
– This reform is a clear signal. We are now tightening the tap on the previous benefits line that has hindered integration, says Linda Lindberg (SD), the Sweden Democrats' group leader.
It is also seen as a fairness aspect towards people who work, according to a source in the government office.
– With this reform, only those who have the right to reside in Sweden will receive assistance, says Johan Britz (L), Minister for Employment.
Emergency assistance will still be available, says Johan Britz (L).
42,000 people will be affected by the gradual qualification when it comes into effect, announces Linda Lindberg (SD).
– It is necessary if we are to live by the principle that it always pays to work, says Hans Eklind (KD) about the reform.