New agreement sets a cap on rates at shelters and crisis centers

The government, the Socialist People’s Party (Socialistisk Folkeparti), and the Conservative People’s Party (Det Konservative Folkeparti) have reached an agreement aimed at improving assistance for the homeless while enhancing the financial management of the sector.

The agreement includes a series of specific initiatives to ensure fair prices for stays at shelters and crisis centers, strengthen aid for rough sleepers, and prevent misuse of public funds.

Shelters and crisis centers play a crucial role as low-threshold services for some of the country’s most vulnerable citizens. However, the sector has been marked by economic challenges in municipalities and instances where private actors have exploited the system. The new agreement aims to address these issues.

A key element of the agreement is the introduction of a cap on daily rates at shelters and crisis centers. Moving forward, shelters can charge a maximum of 2,322 DKK per day, while the cap for crisis centers will be 3,197 DKK per day. Special rate caps are also introduced for stays with multiple children and for aftercare. Shelter places targeted at veterans are exempt from the cap.

Furthermore, stricter requirements for auditor certification are established to ensure that unauthorized expenses are not included in the rates. The goal is to ensure that municipalities pay a fair price in accordance with the law.

To better manage capacity in the shelter sector, non-public places will now be subject to tender. This means that municipalities will choose offers that provide the best value for money while maintaining the current share of private places.

The agreement also strengthens efforts to assist rough sleepers and other homeless individuals who do not use shelters. Municipalities will now receive 50 percent state refund on expenses for housing support for all types of homeless individuals for up to two years after they move into their own homes. This expands the Housing First refund scheme, which previously only covered individuals from shelters.

The existing refund period in the shelter sector is also maintained for two years to support the transition to the new model.

Minister for Social Affairs and Housing, Sophie Hæstorp Andersen, states:

“It is crucial that citizens can show up at a crisis center or shelter and receive immediate assistance when needed. Therefore, it has been extremely important for me that with this agreement, we continue to protect the so-called self-referral principle, which represents the social sector’s lowest safety net. I am very pleased that we are now providing municipalities with some management tools to prevent expenses in the sector from spiraling out of control, and simultaneously making it more difficult for bad actors to exploit the system at the expense of vulnerable citizens.”

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