Czech government will consider increasing the standards for calculating housing allowances

18 August 2022

The government will consider adjusting the normative housing costs, which are used to calculate the amount of the housing allowance. Next week, he will ask the relevant authorities for data for a possible increase in amounts. Prime Minister Petr Fiala (ODS) told journalists today. When the norms are increased, the housing allowance will rise. The debate on support was sparked by the Prime Minister’s statement on Wednesday that the state will reimburse people for housing expenses above 30 or 35 percent of their income. He did not mention the addition of support to the ceiling, which is precisely the norm. The spokeswoman for the Ministry of Labor, Eva Davidová, said that the norms could possibly be raised from October. The Department of Labor is also considering a more targeted setting of support to better match the situation in individual parts of the country.

“We will consider further modification of the norms in order to complete them in such a way that the housing allowance helps as many people as possible,” the Prime Minister said today. He added that the government will contact the Energy Regulatory and Statistics Office again with a request for current data. “To see the real prices of housing and be able to adjust the regulations to meet the needs of the people. The government will want to ask for suggestions for adjustment during the next week,” said Fiala. He mentioned that the average benefit now amounts to over 4,000 crowns. He again called for greater use of the contribution.

Normative housing costs for benefit calculation are set by the cabinet for each year according to price growth. The benefit can be received by people for whom 35 percent of income in Prague and 30 percent elsewhere in the country is not enough for adequate housing. The support provided then corresponds to the difference between the established norm and exactly 30 or 35 percent of the household income. Fial’s government has put into law that due to rising prices, it can increase the standards this year by over a year. The latest amendment is supposed to enable this even in the following years in the event of a “significant change” in average energy costs. In addition, not only the current price increase, but also the estimated one could be taken into account.

Rent norms now range from CZK 6,746 to 22,495, depending on the size of the residence and the number of people in the apartment. For example, it is CZK 12,599 for a three-member household in a district town and CZK 10,121 for a single person in Prague. In own, cooperative and service apartments, the normative costs are from CZK 6,232 to 14,368, depending on the number of people. The amounts are the same for the metropolis and the small town. According to Davidová, according to the data provided by the authorities, the Ministry of Labor will eventually prepare a draft regulation with changes to the amounts, and the regulation could apply from October.

“We are also considering an adjustment so that the location is taken into account more when determining the contribution and the aid is better targeted,” explained Davidová. According to the department’s plans, prices in individual locations should be taken into account when determining support. For example, expenses in cities around Prague are significantly higher than in comparably large places in Ústek or Jesenice, the spokeswoman pointed out.

According to experts on social issues, the norms are low and do not correspond to reality, especially for small households. Criticism was also aimed at the complex processing of the benefit. Since July, the procedure has been simplified.

Source: CTK