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0
500
1000
1500
2000
2500
3000
3500
4000
4500
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
5500
6000
6500
7000
Household with
1 child
Household with
2 children
Household with
3+ children
Housing expenses [SEK/month]
Maximum housing allowance [SEK/month]
The calculation of the Swedish housing allowance is a variation of the “gap
formula” (see, e.g., Fallis, 1990, p.381–382). The allowance, which each
household must apply to receive, is intended to cover a certain part of a
household’s housing expenses. The allowance increases with the number of
children in the household, and is reduced by an income-related amount.
More specifically, the allowance is based on a combination of household
type and size, household housing expenses, household income, and
dwelling size. There is an additional special allowance, a general income
support, which, as it is based solely on the number of children in the
household, cannot be considered a housing allowance. The Swedish housing
allowance therefore consists of both general income support and specific
housing support, the maximum allowance comprising three elements: 1) a
special allowance based on the number of children;
6
2) 75% of housing
expenses between specific levels; and 3) 50% of housing expenses
between (higher) specific levels,
according to
Figure 1.
Figure 1. The Swedish housing allowance schedule for single parents,
1994-1999.
Furthermore, for single parents, the monthly income limit is SEK 9750,
7
the
allowance being reduced by 20% of any income earned above this limit.
This implies that the gap formula for the Swedish housing allowance, for a
single parent with one child and housing expenses of SEK 3000–
5300/month, could be expressed as:
HA=600 + (HE – 3000)0.50 + (3000 – 2000)0.75 – (I – 9750)0.2 where,
HA =
household housing allowance [SEK/month],
HE =
household housing expenses (i.e., the rent paid by a renter)
[SEK/month], and
I =
household income before tax [SEK/month].
6
Children may be considered household members until they reach age 18. However, this age
limit can be raised if the children attend high school and receive a student grant or if they are
studying and receive an extended child allowance.
7
“Income” here is the household income before tax.
