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Danish Welfare Minister Defends Controversial Benefit Reforms Amid Homelessness Crisis

By Nordics Today News Team •

Danish Employment Minister Kaare Dybvad defends controversial welfare reforms as Copenhagen reports citizens becoming homeless due to benefit cuts. Municipal authorities and researchers challenge the minister's proposed solutions, highlighting systemic tensions in Denmark's welfare state. The conflict reflects broader Nordic challenges balancing social safety nets with fiscal constraints.

Danish Welfare Minister Defends Controversial Benefit Reforms Amid Homelessness Crisis

Danish Employment Minister Kaare Dybvad faces mounting pressure as Copenhagen reports citizens becoming homeless following recent welfare benefit reductions. The city confirmed ten individuals lost their housing last week due to inability to pay rent after benefit cuts, with another twenty-seven facing imminent eviction.

The minister shifted responsibility to municipal authorities during the growing controversy. He expressed regret for affected individuals but criticized Copenhagen's administration for not utilizing available subsidy programs. The minister specifically pointed to two funding mechanisms he believes could prevent further homelessness.

Independent housing researchers examined both proposed solutions and found them inadequate for the immediate crisis. Senior researcher Lars Benjaminsen explained that one subsidy program targets homeless individuals seeking new housing rather than those facing eviction from existing homes. The program provides annual 15,000 kroner subsidies directly to housing associations, not individuals, requiring available low-cost apartments that currently have fifty-nine people waiting.

The second potential solution involves emergency rental assistance under existing legislation. However, experts note this provision requires that assistance will prevent future homelessness, which isn't applicable when benefit reductions create permanent payment shortfalls. Benjaminsen clarified that temporary help would need repeating monthly, effectively creating a new permanent benefit.

The eliminated housing subsidy previously provided over 170 million kroner annually to welfare recipients with high rents, including 30 million kroner specifically in Copenhagen. Municipal data shows 1,800 Copenhagen welfare recipients now average 2,791 kroner less monthly after reforms.

Copenhagen's Social Mayor Karina VestergĂĄrd expressed frustration with the minister's position. She questioned why a minister from the ruling party would misunderstand legislation his own government helped create. The mayor emphasized her administration has pushed legal boundaries to help vulnerable residents while maintaining compliance.

A potential 15 million kroner emergency fund announced by the Culture Minister remains undefined. Municipal authorities cannot access these funds without specific distribution guidelines from the national government. The situation highlights tension between national policy decisions and local implementation realities in Denmark's welfare system.

This conflict represents broader challenges in Nordic welfare states balancing budget constraints with social safety nets. Similar debates have emerged in Sweden and Norway where governments face pressure to maintain comprehensive benefits while controlling public spending. The Copenhagen situation demonstrates how national policy changes create immediate local consequences, particularly in expensive urban housing markets.

The minister declined interview requests, referring instead to previous statements. The standoff continues as vulnerable citizens face housing instability during Denmark's ongoing welfare system restructuring.

Published: November 21, 2025

Tags: Denmark welfare reformsCopenhagen homelessness crisisNordic benefit cuts