Latvia Proposes Changes to Terms for Needy Household Status and Housing Benefit Calculation

The Ministry of Welfare (LM) has developed a draft regulation on assessing household material situation, proposing several changes to the social assistance system.

One key change concerns the periods for which the status of a needy or low-income household and the Guaranteed Minimum Income (GMI) benefit are granted.

For households with at least one person of working age, as well as for individuals who have just reached retirement age or been declared disabled but have not yet received their pension for three months, the status would be granted for three months. The same term applies to recipients of foreign pensions. In contrast, households consisting solely of recipients of old-age pensions, disability pensions, or state social security benefits who have been receiving these payments for more than three months would receive the status for six months. This also applies to families living with such persons and their children.

In special cases, where a household meets income thresholds but fails other conditions, the status may be granted for one month, requiring cooperation with the social service to address the non-compliance.

The ministry also plans to expand the list of payments not counted as household income. This includes the "Studētgods" social stipend, unemployment stipend for participation in the State Employment Agency's "Work Trial" program, insurance compensation, and support from others for housing costs if the household does not receive a housing benefit or if the benefit does not cover the costs. Mortgage principal and interest payments for the only home, as well as paid child support, would be deducted from income.

Property assessment rules will change. The requirement to verify whether a garden house is used only in summer would be dropped due to administrative burden. Social assistance eligibility will not be affected by one property owned by a person receiving group home services, provided they can return to it. Properties in legal possession (without registered title) will also be considered.

Housing benefit would be granted for the period of the subsistence declaration but paid only for months when the household cannot cover housing costs (e.g., during the heating season). The benefit cannot exceed actual expenditures. If costs increase, the social service may recalculate the benefit for the previous three months upon application. If the benefit was initially denied but costs later rise, a re-calculation can be requested.

Basic social assistance benefits will be paid monthly, except for the housing benefit for individual heating, which can be calculated once a year and paid in one or several installments, including in advance. After using the advance, expense documents must be submitted.

The benefit will primarily be transferred to the manager, service provider, or fuel supplier. If that is not possible, it will be paid to the claimant or in cash.

The list of eligible expenses will be expanded to include heat energy meter costs, bill delivery charges, and energy efficiency measures for individual houses. Debts and related payments are excluded.

Social assistance may be denied if the application contains incomplete or false information, cooperation obligations are not met, or a home visit is obstructed. Assistance may also be denied if a person is not registered with the State Employment Agency and does not fulfill unemployed duties. LM emphasizes that cooperation obligations must be set individually, considering the person's abilities and circumstances.

The draft regulation has been submitted for public consultation until August 6, after which it will be reviewed by the government. The new framework is planned to take effect on July 1, 2027. LM states that the changes will not alter assistance amounts or create additional budget costs.