Mário Cruz / Lusa
Errors in communicating the end of rental contracts led to 33,000 tenants receiving support unduly. Even though it’s not their fault, they are left with debts of 12 million euros to Social Security.
Around 33 thousand beneficiaries of extraordinary rental assistance were unduly covered due to failures in communicating the termination of rental contracts, which generated a loss of more than 12 million euros to Social Security. So far, only 6 million have been regularized, with part to be paid in installments by affected beneficiaries.
The problem arises mainly from delays at the Tax Authority (AT) in inform the termination of contracts to Social Security, but there are also cases of landlords who do not communicate these changes. As support is automatically allocated, tenants have no control over receipt and, when an error is identified, they are obliged to refund the amounts, regardless of their responsibility in the process.
The extraordinary income support, created in 2022, is intended for tenants with income up to the sixth income bracket and contracts signed until March 15, 2023, which prove an effort rate with income equal to or superior a 35%. This year, a rule was introduced that allows the benefit to continue for those who renew contracts at the request of the landlord, maintaining the same house and household, but the impacts of this change have not yet been evaluated.
Tenants interviewed revealed that, although the mistake was not theirs, they were left with debts and will now be forced to return the money. In the case of Joana Fernandes, the problem arose when her landlord did not inform the Treasury of the end of the contract after her housemate’s departure forced her to sign a new contract.
This situation led to him continuing to receive support unduly for a year, accumulating a debt of 2358 euros. After several frustrated attempts to reverse what she considers an error in the system, Joana Fernandes ended up reaching an agreement to return the money over eight years.
“I didn’t question the fact that I continued to receive support. I knew that it was granted to people with a contract signed until March 2023, but when I continued to receive support, I thought that, having a different contract but staying in the same house, with the same landlord and the same rent amount, maintained the right to support“, reveals Joana Fernandes.
The Ministry of Labor, Solidarity and Social Security blamed the failures on AT delay in communicating contractual changes. This problem has already been identified by the Court of Auditors, which pointed out the need for greater rigor in the process, including greater active participation by beneficiaries to avoid undue payments.
