Up to 35,000 households, equivalent to 60% of tenants in Luxembourg, are expected to be eligible for rent subsidies Pexels

Up to 35,000 households, equivalent to 60% of tenants in Luxembourg, are expected to be eligible for rent subsidies Pexels

Among the changes in the bill, presented on 21 September by housing minister Marc Hansen, are a reduction in the so-called “taux d’effort”, from 33% to 25%, for households who spend more than a quarter of their monthly income on rent.

To be eligible, beneficiaries must have only three months’ revenue at their disposal, as opposed to six months’ under the existing law. The aim is to benefit as early as possible people who are in the early stages of their careers.

Other benefits will no longer be taken into account for the income calculation.

All income thresholds will be revised upwards. For a one-person household this threshold will increase from €1,874 to €2,500, for a two-person household of €2,811 to €3,750, for a three-person household, it will increase from €3,374 to €4,500, and so on.

The amount of aid can be up to €300 maximum, depending on the composition of the household. In 2016, the amount paid to households was €126 on average.

According to estimates by the Ministry of Housing, some 35,000 households could benefit from subsidies, which corresponds to about 60% of tenants in Luxembourg. The currently law, which was introduced in January 2016, targeted some 19,000 households. According to the minister, only 11% of eligible households actually benefited from a subsidy, however.

The new law should take effect on 1 January 2018. The bill provides for a budget of €10m for next year; the same amount that had been entered in the budget for the current year.

A calculator is available at www.guichet.public.lu.