Information on the changes to the rent subsidy that will apply as of 01.08.2022

The law providing for the upward adjustment of the rent subsidy and thus transposing an element of the spring tripartite agreement came into force on 1 August. However, when the new values were applied, it turned out that the version of the text submitted and voted by the Parliament and published in the Official Journal of Luxembourg contained a material error. This error affects less than 1% of the beneficiary population and will be rectified as soon as possible by an amending bill with retroactive effect to 1 August, which is planned to be presented to the Government Council on 2 September 2022.

The material error concerns the income ceiling for accessing the maximum amount of the monthly subsidy set at 400.00 euros for households with 3 or more children. This limit is listed in the annex to the law in the table of calculation parameters. This net annual income limit for accessing the maximum monthly support amount of EUR 400.00 should be EUR 8,937.00 (index number 100). The current limit in the table is EUR 6,937.00.

The effect of this error is that beneficiary households with 3 or more children whose annual net income currently exceeds EUR 58,269.00 will receive a lower rent subsidy than expected. A total of 31 households currently receiving rent subsidies are affected. The amount of aid paid to them will not be less than that granted before the entry into force of the new law of 22 July 2022. After the recalculation of the affected cases, all affected households will be informed by mail of the updated rent subsidy amount. The material error has no impact on the eligibility of households for a rent subsidy.

It is intended that the correction of the material error will apply retroactively to 1 August 2022, so that each affected beneficiary household - which would have received a reduced amount of aid because of this material error - will receive the difference as soon as the amending law is published. Thus, all beneficiaries will get the full amount of aid originally foreseen by the government. No action is required on the part of the beneficiaries concerned.

Press release by the Ministry of Housing

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