Swedish Government Finalizes Controversial Social Benefits Reform Affecting 150,000 Households

The Swedish government, led by Prime Minister Ulf Kristersson and Social Insurance Minister Anna Tenje, has finalized a legislative proposal to introduce a cap on social benefits that will impact approximately 150,000 households across the country. The reform includes tightening social assistance rules starting January 1, 2027, and implementing a national activity requirement from July 1, 2026, for eligibility to receive social assistance.

Under the new rules, municipalities will lose the ability to grant additional allowances to social assistance recipients, and a cap will limit benefits particularly from the fourth child onward in families receiving support. Social Insurance Minister Anna Tenje indicated that many large families will see their assistance reduced by several thousand kronor. The activity requirement mandates that recipients participate in approved activities organized by municipalities, companies, or organizations, or risk reductions or loss of benefits.

Critics, including Alexander Ojanne, social- and security councilor for Stockholm, have condemned the reform, highlighting its disproportionate effects on immigrant families, especially those with four or more children, 95% of whom are foreign-born. Ojanne warns that the reform reflects ideological blind spots and fails to understand the real-life consequences, potentially pushing vulnerable families deeper into poverty. He and opposition politicians argue that the reform risks increasing child poverty and social problems such as crime and substance abuse.

Opposition voices, like Maj Karlsson from the Left Party, stress that the policy could leave more children without food while socioeconomic disparities widen. The government defends the reform by emphasizing its goal to encourage work over dependence on social support, yet opponents remain concerned about the broader social implications.

The proposals were agreed upon as part of the broader benefits reform outlined in September by the governing Tidö parties. The finalized law marks a significant shift in Sweden’s approach to social welfare, especially for large and immigrant families who stand to face substantial cutbacks in assistance.