Latvia raises housing benefit for low-income residents for the heating season
From 1 November to 30 April 2027, higher coefficients for calculating housing benefit take effect in Latvia. The changes also cover benefits already granted and are estimated to cost the state budget 8.7 million euros.
Amendments to Latvia's Law on Social Services and Social Assistance enter into force on 1 November, increasing the housing benefit for low-income households during the heating season. The higher coefficients used to calculate the benefit will apply until 30 April 2027. Housing benefit is a form of social assistance paid by local governments to help cover the costs of maintaining a home.
New coefficients
For pension-age people and people with disabilities who live alone, the coefficient will rise from 2.1 to 2.5. For households consisting only of pensioners or people with disabilities, as well as for families with children, it will go up to 2. For all other households, it will increase from 1.3 to 1.7.
Why the change was made
The Ministry of Climate and Energy has explained that the amendments are needed because heating costs are forecast to rise in some localities. The aim is to reduce the impact of growing housing costs on less protected groups of residents. Similar changes to the benefit calculation were already introduced at the start of this year, after a prolonged cold spell and a significant rise in housing maintenance costs.
How it will work
Local government social services will recalculate benefits that have already been granted, without requiring residents to apply, using the new coefficients. The state will provide local governments with an additional earmarked grant to cover part of the higher spending.
The average monthly number of benefit recipients is expected to grow by 2,232 people, reaching 37,610. The average benefit per person is set to increase from 149.19 to 174.11 euros per month.
The total impact on the state budget is estimated at 8.7 million euros. More than 8 million euros are earmarked for additional housing benefits, and about 602,000 euros for extra payments to social service employees for their increased workload. The Saeima, Latvia's parliament, adopted the amendments in the final reading on 24 September.
