Changes to the housing allowance for pensioners in 2023
In 2023, the maximum amount of heating costs taken into account in calculating the housing allowance for pensioners will be higher than previously. 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 housing allowance for pensioners will also be increased in 2023. The amount of separate heating costs taken into account in calculating the housing allowance for pensioners will be increased considerably. This change is prompted by the rapidly rising energy prices. Higher water and maintenance costs will also be taken into account in calculating the benefit.
In 2023, the amount of heating costs taken into account for the housing allowance for pensioners is 2.07–2.35 euros per square metre per month (previously 1.32–1.60 euros per month).
The amount of water charges taken into account as housing costs will be raised to 32.40 euros per person per month (from 30.05 euros per person).
The monthly maintenance costs taken into account for a single-family home will increase to 47.84 euros per month (from 44.37 euros per month).
The maximum housing costs taken into account in the housing allowance for pensioners will be adjusted in line with the National Pensions Index, in other words increased by 7.8% in all three municipality classes.
In 2023, the maximum housing costs taken into account in calculating the benefit will be the following, listed by municipality class:
- Class 1 municipalities: EUR 9,287 per year
- Class 2 municipalities: EUR 8,541 per year
- Class 3 municipalities: EUR 7,493 per year.
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 or reviewing previously granted housing allowance for pensioners.
Housing allowance for pensioners is reviewed on application by the client.
Who should submit an application for a review?
The housing allowance for pensioners is reviewed when, for example, housing costs taken into account increase by 204 euros per year 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.
- Your form of housing is something other than single-family house, but heating costs have been separately taken into account in your housing allowance.
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 pensions and benefits taken into account as income in the housing allowance for pensioners will also increase as of 1 January 2023. These other increases in income together with other changes in housing costs may affect the amount of the housing allowance.
Housing allowance for pensioners can be granted retroactively for a maximum of 6 calendar months before the date of application.
Kela strives to review all housing allowances for pensioners that take into account separate heating costs early on in 2023.
Calculator to be updated in January
A calculator for the housing allowance for pensioners 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 for pensioners in 2022.