Government to Issue Retroactive Rent Support as Systemic Flaws Plague Program
The Portuguese government has announced that 129,642 tenants will receive extraordinary rent support payments in September, retroactive to January 2025, following a comprehensive review by the Institute of Housing and Urban Rehabilitation (IHRU). However, the Ministry of Infrastructure and Housing also confirmed that 58,659 applicants have had their payments suspended due to persistent data inconsistencies, revealing significant operational failures within the support mechanism.
The policy, officially titled the Extraordinary Rent Support Program (PAER), was established in 2023 to alleviate financial pressure on renters amidst a challenging housing market. The Ministry's announcement follows an intervention by the national Ombudsman, which sent a formal request to the Secretary of State for Housing for an urgent review of the program. The Ombudsman's office reported receiving approximately 1,000 complaints between May 2023 and July 2025, citing severe irregularities, payment suspensions, and a lack of communication from the state.
In a written response to the Lusa news agency, the Ministry of Infrastructure and Housing attributed the problems to the program's initial design by the previous government. The statement described the PAER as 'poorly conceived,' highlighting the complex and ineffective cross-referencing of data between five separate public entities: the IHRU, the Tax and Customs Authority (AT), the Social Security Institute (ISS), the General Pension Fund, and the Foundation for Science and Technology. The core issue identified was a failure to ensure 'interoperability' between these systems, leading to widespread errors and delays.
The government has stated that a full review of the program is planned 'soon' to address these structural deficiencies and improve its operationalization. The Ombudsman's findings detailed a system where citizens' fundamental rights were overlooked. The report noted that 'fully enshrined rights, such as citizens' right to information, notification of decisions, justification for administrative acts, and prior hearing of interested parties,' were consistently disregarded. This left applicants in an administrative void, 'repeatedly redirected from service to service, unable to obtain the information they sought'.
The technological infrastructure underpinning the program was also heavily criticized. The Ombudsman described the IT platforms as 'fragile and inadequate for their purpose,' directly contributing to the 'extreme delay' in processing applications and issuing payments. In many cases where payments were eventually initiated, tenants received only a single monthly sum, with no information provided on when the significant retroactive amounts would be settled. This has exacerbated financial hardship for many, with the Ombudsman noting that 'citizens claim that their social and economic situation has worsened due to government failures'.
The ongoing difficulties have fostered what the Ombudsman's office calls 'deep distrust' in a legal measure that was intended to provide critical support. The systemic failures of the PAER had been previously flagged in the last two annual reports submitted to the National Assembly, indicating that warnings about the program's deficiencies were not adequately addressed. The current administration now faces the dual challenge of correcting a flawed policy while rebuilding public confidence. Understand policy impacts on your Portugal property plans at realestate-lisbon.com.
