2024-04-13 07:47:05
Although the Luxembourg State provides several support measures for families with lower incomes, many households do not request them. The issue is often a lack of knowledge about the existence of these aids or the complexity of the application procedures.
Here are the aids available in the country and the requirements to obtain them.
Rental support
One of the financial aids available is rent subsidy (rental subsidy) from the Ministry of Housing, which is intended to allow access to suitable rented accommodation. Depending on income and household composition, the amount of support varies between 200 and 400 euros per month. The decisive factor is the annual net income, which must not exceed 38,973 euros for a single person and 70,534 euros for two people with one child, for example. Furthermore, the monthly income must represent more than 25% of the net income.
“Shame of poverty”. Only 20% of eligible residents request income assistance
Support to pay the rent deposit
Considering that the rental guarantee (rent deposit) required by the landlord constitutes an obstacle for many low-income families, it is also possible to request State help in this area. The Ministry of Housing then guarantees a deposit to the tenant. In return, he undertakes to save the total amount of the deposit over a period of three years. The amount must be refunded to the Ministry if the owner uses the deposit.
To obtain this support, the candidate must, among other requirementsrent a house in Luxembourg and have a rent equal to or less than 50% of your income.
Help with the cost of living
A cost of living allowance (cost of living allowance) is only claimed by around 60% of the people who are entitled to it. It is the responsibility of the National Solidarity Fund (National Solidarity Fund, FNS) and is granted to families with low incomes to cover daily expenses. The amount of annual support depends on the size of the applicant’s household.
Eligibility conditions include uninterrupted residence in Luxembourg during the 12 months prior to the date on which the application is submitted. Gross monthly income must not exceed the maximum limit provided for by law. For a single person, for example, it cannot exceed 2,578.29 euros, while for a family of three it cannot exceed 4,640.92 euros.
People who have received a State scholarship in the 12 months prior to submitting their application are not entitled to the cost of living allowance.
Energy cost support
The FNS is also responsible for energy bonus (energy supplement). The annual subsidy of 200 to 400 euros is given to low-income families to cover energy costs. The maximum monthly income limit to be taken into account is higher than that for cost of living support, but the eligibility conditions are the same.
Extracurricular activities and school supplies
Although compulsory textbooks have been free since the 2018/19 school year, the cost of other materials or extracurricular activities can be a problem for low-income families.
Families receive support of up to 235 euros to buy school supplies
Therefore, these households receive an annual subsidy for low-income households (subsidy for low-income households) of the Ministry of Education. The amount of this support is between 662.28 and 993.42 euros per student and per year. The application form is available from the beginning of the school year at the School Psychological Counseling and School Guidance Service (SePAS) of the respective school.
Bring support to those who need it
The Government is aware that aid does not always reach where it is needed. During the last legislature, attempts were made to publicize existing support and eliminate administrative obstacles. The coalition agreement also lists possible solutions – for example, the creation of a Guichet social (Social counter) or a Shared social folder (shared social dossier) – but these will take some time to put into practice.
To understand the factors that lead to precarious living conditions and analyze in more detail the reasons for not using aid, the Chamber of Employees (Chamber of Salaried Workers, CSL in its French acronym) commissioned a study from the Luxembourg Institute of Socio-Economic Research (Luxembourg Institute for Socioeconomic Research, LISER in its English acronym), in collaboration with Statec. The results were presented in February.
Based on this data and the results of the EU-SILC survey (European Survey on Income and Living Conditions) of 2023, Statec now wants to carry out new analyzes “to determine the extent of the phenomenon of people eligible for support and not receiving it. ask,” as can be seen in the response of Economy Minister Lex Delles (DP) to a parliamentary question from Ben Polidori (Pirate Party). However, results will only be available in autumn 2025.
(Article originally published on Luxembourg word and adapted for Contacto by Filipa Matias Pereira and Maria Monteiro.)
2024-04-13 07:47:05