Changes to the general housing allowance in 2023
In 2023, the maximum amount of heating costs taken into account in calculating the general housing allowance will be higher than previously. There will also be an increase in the maximum maintenance costs taken into account for single-family houses. The aim is to ease the financial hardship caused by the high price of electricity.
The amounts for other cost categories taken into account in calculating the amount of the general housing allowance will also be increased in 2023. The maximum allowable separate heating costs and maintenance costs for single-family houses will be increased by 57% compared with 2022 in response to the sharp rise in energy prices. The change will be in effect for the year 2023.
In terms of heating costs, this means that in 2023, separate heating costs of 66 euros per month can be taken into account for the general housing allowance in a single-person household (compared with 42 euros per month in 2022). If the household includes more than one person, 22 euros per month is added for each additional person (previously 14 euros per month).
The maximum amounts of maintenance costs will also be increased. In 2023, the amount of maintenance costs taken into account for the general housing allowance for a one-person household will be 155 euros per month (previously 99 euros per month).
The maximum housing costs allowed under the general housing allowance scheme are adjusted annually in line with the cost-of-living index. This means that the maximum housing costs allowed will be increased slightly at the beginning of 2023. For example, in 2023, the maximum housing costs allowed for a person living alone in Helsinki will be 582 euros per month (previously 537 euros per month).
When are increased housing costs taken into account?
Kela will take into account the raised maximum amounts and other increases as of 1 January 2023 when processing new applications for housing allowance or reviewing previously granted housing allowance.
General housing allowance is reviewed on application by the client.
Who should submit an application for a review?
The general housing allowance is reviewed when, for example, housing costs taken into account increase by 204 euros per month or more. Situations where a review of the housing allowance is called for include the following:
- You live in a single-family house which you own.
- There has been a change in your housing costs of 50 euros or more.
If necessary, recipients of housing allowance can contact Kela’s customer service to find out whether they need to submit an application for review.
Many of the other Kela benefits taken into account as income in the general housing allowance will also increase as of 1 January 2023. These increases may also affect the amount of housing allowance.
General housing allowance can be granted retrospectively for the month preceding the application, at most. This means that Kela can review the general housing allowance from 1 January 2023 onward if the application for review has arrived on 28 February 2023 at the latest.
Kela strives to review all housing allowances that take into account allowable maintenance costs for single-family houses or separate heating costs early on in 2023.
Calculator to be updated in January
A calculator for the general housing allowance is available on Kela’s website. The calculator will be updated in January. At present, the calculator is set to check the amount of housing allowance in 2022.
There will also be changes to the housing allowance for pensioners at the beginning of 2023.