Housing benefit expenditures are rising, social housing is lacking

Residential complex Sào Victor in Porto (Álvaro Siza, 1974-77)

Prague - Spending on housing benefits has significantly increased this year compared to last year. The number of people receiving them is also on the rise. While last year, in the first eight months, around 4.77 billion crowns went towards housing supplements and contributions, this year it has already reached almost 6.57 billion. This is an increase of about 73%. In total, employment offices distributed more than 236,000 housing benefits in August this year, compared to approximately 185,000 a year earlier. This information comes from the Ministry of Labor. According to experts, there is a lack of social housing for people in need in the Czech Republic. As a result, they often end up in overpriced accommodations, for which the state subsequently subsidizes them.
    In the Czech Republic, there are two types of housing benefits - the contribution and the supplement. In August, 170,000 housing contributions were issued. A year ago, there were one-fifth fewer, totaling 140,900. In the first eight months, almost 4.79 billion crowns were allocated for these benefits. This is about 28 percent more than last year. At that time, employment offices issued 3.75 billion. In August, people divided 552 million crowns, compared to 422 million the year before. According to the ministry, the increase in the number of benefits and spending is due to the worsening situation of many households and the increase in benefits, which were adjusted in January due to rising housing costs.
    The housing contribution is part of state social support benefits. It can be received by people with low income in need. Depending on the number of household members and the size of the area where they live, they can receive between 4,665 and 18,307 crowns in rent. For people in cooperative or owned apartments, the state can contribute between 4,396 and 11,615 crowns per month.
    In August, the state also issued 66,400 housing supplements. Last year, there were 22,000 fewer. From January to August, this benefit received 1.78 billion crowns, while during the same period last year it was around a billion. "This represents a significant increase of 762.7 million crowns. It is 74.7 percent," states the ministry's report on benefits disbursement. According to it, the reasons for this increase are rising unemployment and an increase in people in need. Spending has grown on supplements in rented housing and elsewhere, particularly in accommodations, clarified the authors of the report.
    The housing supplement is a benefit for people in material distress. It is granted to those who are entitled to receive the housing contribution. Together with it, the supplement aims to cover justified housing costs. It is determined so that after paying for housing, a designated amount remains for the family's livelihood.
    Experts criticize accommodations for their inadequate conditions and excessive rents. State funds often go directly to the accounts of the owners of these facilities. Experts refer to this as "poverty commerce." According to findings from the government agency for social inclusion, a four-member family in one of the accommodations in South Bohemia's Větřní paid about 10,800 crowns for 48 square meters, including fees. Renting a 65-square-meter apartment would cost a maximum of 5,499 crowns according to rental maps, while a similarly sized municipal apartment without services would cost between 1,982 and 2,294 crowns.
    According to experts, social housing would help. Its model is to be proposed by the ministries of labor and local development by the end of the year. They are currently planning, for instance, to limit the duration of subsidy payments for housing to six months. However, the Ministry of Local Development had previously commissioned a study indicating that accommodations could be part of social housing. Academics and representatives of organizations that assist those in need have opposed this.