Housing allowance by local municipalities (Lakásfenntartási támogatás)

People on low incomes could apply to local municipalities/districts for a small allowance (4000-4500 HUF/month; €11.40-12.80 /month) for covering housing or energy costs. Between 2004 and 2015, 90% of the allowance was provided by the state, 10% was provided by the municipalities. From 2015 the Hungarian state withdrew from financing the allowance and let the municipalities decide whether they keep the programme or not. Although the amount of the allowance was too small even before 2015 and the programme was unable to reach many eligible families, it was one of the last socially targeted state benefits. The number of households receiving the allowance dropped by around 50% and the amount dropped by around 60%. Currently around 1 million people live in settlements where housing allowance is not available at all.