5 April 2024

Committee of experts offers solution for increased social spending


Between 2018 and 2022, expenditure on the "specialised social area" has increased by DKK 4.5 billion - more than the Danish municipalities' total budgets on this area. The Danish government has therefore set up a committee of experts to make recommendations on how to solve the rising costs that are putting pressure on the Danish municipalities. Professor Mette Gørtz is a member of the Committee of Experts.

Mette Gørtz

Better quality

The government set up the Committee of experts in 2022 and the experts have now given their second and final report with recommendations on how to solve the fast-growing expenditures.

The Committee points out that it is especially in the area of social housing that costs are rising. While the number of individuals living in social housing rose by 4 percent in the period, the expenditures went up by 12 percent, implying that the cost per housing unit became more costly in the period.

To secure a more well-functioning market of private supply of social housing, the committee notes that more transparency in the link between price and quality is needed. Also, competition among private suppliers could be enhanced by strengthening municipalities options for choosing alternative suppliers, including municipal housing.

The Committee furthermore emphasizes the need for more knowledge and research into what social policies work, stressing the importance of better data on costs and benefits of social policies.

The Expert Group's recommendations

The expert group made 19 recommendations in total. Here is a selection of them:

Adequate development of housing capacity: There is a need to consider the impact of changing legislation to make it easier for councils to build new homes.

Better support for matching citizens with housing supply: To a greater extent than is currently the case, housing should be tailored to specific target groups. For example, youth or elderly environments in housing facilities.

Developing and disseminating knowledge about preventive measures: In short, this means that there must be a more systematic