Combating poverty through energy costs: new measures to help vulnerable households

As part of a general government strategy to boost household purchasing power, the fight against poverty is a particular priority for the Ministry of Family Affairs, Solidarity, Living Together and Reception of Refugees. For the Ministry, the gradual phasing out of the energy price cap must be accompanied by targeted social measures for vulnerable households, in order to cushion the financial impact.

"A sudden rise in energy prices could confront vulnerable households with new difficulties. For the government, it is essential to step up our efforts to support disadvantaged households and prevent more people from being affected by the risk of poverty", emphasised Max Hahn, Minister for Family Affairs, Solidarity, Living Together and Reception of Refugees.

In concrete terms, the following measures will be implemented:

1. Energy allowance
   • Increase in the income limit setting the threshold up to which the energy allowance can be claimed. Currently set at 25% above the income limit for the cost-of-living allowance, the threshold will be raised to 30%.
   • The current amount of the energy allowance will be increased threefold, in two increments. The full amount of the new allowance will be paid to an income limit 25% above that for the cost-of-living allowance, while those whose income is above 25% will still be paid half the allowance up to the 30% limit.
2. Tax credit equivalent (ECI)
   • Perpetuation of the ECI for recipients of the basic flat-rate amount per adult due under the Social Inclusion Income Act of 18 July 2018, as well as recipients of the Severely Disabled Income. The amount of the ECI will be increased to €90.
3. State contribution to financing the increase in energy costs for accommodation facilities for the elderly
   • Renewal of the State's contribution to financing the increase in energy costs for residential care facilities for the elderly for the year 2025. In return, the service providers benefiting from this contribution undertake not to apply any price increases during the period in question, with the exception of increases due to the adjustment of rates to the cost of living index.

Press release by the Ministry of Family Affairs, Solidarity, Living Together and Reception of Refugees