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Sweden introduces benefit cap and activity requirement

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Sweden introduces benefit cap and activity requirement
Key Points
  • Government introduces benefit cap and activity requirement for income support recipients.
  • Reading strategy includes language breakfasts and funding for schools.
  • Language requirements in elderly care expand with Social Democrats pushing for national rules.

The government has decided to send the bills 'Activity requirement for recipients of income support' and 'Reformed income support – benefit cap and increased opportunities for work' for consultation. The activity requirement applies to those who have received income support for at least three consecutive months and must participate in activities to retain eligibility. Persons already participating full-time in a labor market policy program are not covered.

The Swedish Public Employment Service is responsible for assessing whether program participants have sufficient employment, and the social welfare board must notify the service when a jobseeker may be relevant. The government and Sweden Democrats are introducing the benefit cap despite criticism that it risks increasing child poverty and not leading to more jobs. The government is also presenting a 'reading strategy for Sweden' with increased language training for younger students.

The strategy includes language breakfasts for preschool class and grades 1-3, with 30 million kronor allocated for the autumn term 2026, as well as extra millions for homework help and books. On language requirements in elderly care, the government's proposal is expected to enter into force on July 1, 2026. The Social Democrats now want to introduce national language requirements across the entire welfare sector, including preschool and other professions.

Claiming that Sweden is on the right track is a mockery of all young people who are without work and without housing.

Elfva Barrio, Chair of the Social Democrats' student organization

Integration policy spokesperson Lawen Redar announced the party's new position at a press conference, stating that one must be able to perform one's job and understand what one does. The Social Democrats consider the government's proposal insufficient and want an inquiry into which other professions should be covered and how language tests should be designed. Meanwhile, Tyresö municipality has started language tests for all staff and politicians in the elderly and care administration, ahead of the national law.

About 350 employees have already taken the test, and another 70 will be tested before summer. An estimated 5 to 8 percent of tested municipal employees do not reach the required language level. Linköping municipality introduced a written language test for job applicants in elderly care from January 1, 2025, and is raising the language requirement from Swedish at year 9 level to upper secondary level.

In Stockholm, a demented woman lost thousands of kronor in a Swish fraud after being tricked by home care staff. In 2025, 4,696 elder frauds were reported in Stockholm city, nearly double the number from four years ago. The Social Democrats in Stockholm propose three measures: training all elderly care staff, clearer routines for victims, and a new safety coordinator role.

The truth is that the new rules will drive up prices and are therefore a investment in the banks' profits.

Elfva Barrio, Chair of the Social Democrats' student organization

Police officer Anders Bryngelsson described the proposal as great and hoped more municipalities would follow. The government has tasked the Swedish Agency for Government Employers with following up on measures and analyzing the age distribution among state employees, with a focus on older workers. Age discrimination is prohibited in working life under the Discrimination Act.

The Swedish Discrimination Ombudsman's report shows that older and younger people are more exposed to age discrimination, especially in working life. An IFAU report shows that the probability of being called for an interview decreases markedly after age 40, especially for women. The government has also tasked Forte with analyzing the research need regarding aging in working life.

The Social Democrats' spring budget motion proposes increasing child benefit by 200 kronor and a temporary increase in maintenance support by 500 kronor from July 1. They also propose 400 million kronor for an electric car bonus and electrification of heavy vehicles, and that the government introduce a strengthened system for short-time work by June 1. The motion also proposes lowering the electricity tax on large-scale heat pumps to curb price increases on district heating.

One must be able to perform one's job and understand what one does.

Lawen Redar, Integration policy spokesperson for the Social Democrats

The Social Democrats warn of another inflation shock with higher fuel prices, energy prices, and interest rates. The motion includes several proposals previously presented in earlier budget motions. The government's spring budget motion focuses on proposals important to implement already this year given the economic situation.

LO is critical of the budget, saying it does not do enough against unemployment. The Social Democrats' student organization chair Elfva Barrio called it a mockery of young people. The government wants to introduce mandatory leadership training for managers in elderly care, similar to principal training in schools.

The government also wants to introduce a new exam goal concerning youth crime in the social work education program from autumn 2027. Several universities have criticized the new exam goal as political micromanagement. The National Board of Health and Welfare has issued new guidelines for allergy care in Sweden.

The government's new mortgage rules allow borrowing a larger share of the home price, requiring a lower down payment. The government has tasked the National Board of Health and Welfare with investigating how to prevent unsuitable doctors from working in Swedish healthcare, following an Ekot investigation. The assignment must be reported by March 31, 2027.

Implementation timelines include: an oral progress report on system support and collaboration structures must be submitted to the Government Offices no later than June 1, 2026, and final reporting by January 15, 2028. 81 percent for employees born 2003-2007 with a monthly salary up to 25,000 kronor. Locally, the youth council in Skärholmen believes some young people may need extra support from the district to get jobs after upper secondary school.

The Christian Democrats in Östersund propose that the municipality investigate introducing 'class grandmother and class grandfather' to get more elderly into schools. The National Board of Health and Welfare sends a survey to all people aged 65 and over who have home care or live in a nursing home to ask about their views on elderly care.

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