Following the reduction in cash subsidies: Mayors propose solutions to provide cheaper housing

Seventeen mayors in the capital region, along with three mayoral candidates, submitted ten proposals aimed at reducing housing prices. The officials formed an alliance with the capital's main trade union federation and the National Tenants' Union under the name "Housing Alliance," according to local media.

The coalition called on the government to grant municipalities broader powers to allocate a larger proportion of housing projects to public housing.

Currently, municipalities can mandate that this percentage reach 25% of new projects, while the coalition is demanding that it be raised to 33%, according to TV2.

Prime Minister Mette Frederiksen told TV2 that her government is working on a temporary plan to prevent some welfare beneficiaries from becoming homeless after aid cuts under the cash benefits reform.

Frederiksen told Danish broadcaster DR: “We currently have a problem in some areas where affordable housing is not available. We need to find a temporary solution to this, and we will do so as a government.”

This statement comes after a proposal from Foreign Minister and Moderate Party leader Lars Løkke Rasmussen, who called for temporary rent subsidies to save the most vulnerable from losing their homes.

It is worth noting that thousands of Danes have lost a significant portion of their benefits since July 1st of this year.

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