The government and supporting parties reach agreement on temporary food payments

The government, together with the Socialist People’s Party and the Red-Green Alliance, has reached an agreement on a temporary food payment scheme intended to provide financial support to some of the Danes who are hardest hit by rising food prices. A total of DKK 4.5 billion has been allocated to the scheme in 2026.

Under the agreement, DKK 2,500 tax-free will be paid to state pensioners with liquid assets of up to DKK 350,000, as well as to individuals who received a public income-support benefit in November 2025. Financially vulnerable families with children and a personal income below approximately DKK 500,000 will receive DKK 5,000. Students receiving the SU at the away-from-home rate, as well as recipients of other school and education-related benefits, will receive DKK 1,000.

The food payment will be paid out as a supplement to existing benefits. It has been agreed that payments to pensioners, benefit recipients and SU recipients will take place in May, while families with children will receive their support in June. The parties to the agreement aim to fast-track the legislation through the Danish Parliament.

Minister for Finance Nicolai Wammen states:
“I am pleased that a broad majority has come together to provide rapid and targeted financial assistance to some of the people who are most affected by higher food prices. This help does not solve all the problems, but it is an important helping hand to, among others, the pensioners and families with children who are most financially vulnerable.”

Minister for Economic Affairs Stephanie Lose adds:
“I am pleased that with this agreement we can provide a financial helping hand to pensioners with small assets, families with children, students and people outside the labour market. […] With the temporary food payment, we are doing something special for the people who spend the largest share of their budget on food and therefore feel most acutely that food prices have risen significantly over the past five years.”

At the same time, the government has indicated that in the future it will take a closer look at the possibility of reducing VAT on food – albeit within economically responsible frameworks.