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Cities sound the alarm with the minister about poverty due to expensive energy

Cities in the Netherlands urgently call on the cabinet to take more measures against energy poverty. With energy prices continuing to rise, city councils are receiving more and more signals from residents who are unable to pay their bills.

“We are very concerned”, write the administrators of the forty largest and medium-sized cities, the so-called G40, in a letter to Minister Schouten (Poverty Policy). They call for a more structural approach to the problem. According to the G40, the current measures taken by the government are insufficient.

Distressing signals

“Signals we receive from residents are increasingly distressing and foreshadows of impending debt problems,” writes Alderman Rob de Geest of Deventer in the fire letter.

He refers to calculations by Statistics Netherlands that an average annual energy bill increases by 1,700 euros. With the 400 euros tax compensation and the one-off compensation for low incomes of 200 euros, there is still an amount of 1,100 euros, argues De Geest. “Low-income residents cannot absorb this increase.”

‘Need action now’

According to the G40, it is important to act now to prevent citizens from ending up in debt counseling. As a result of the war in Ukraine, prices at the petrol pump have risen to record highs. Gas prices have also risen sharply.

Stimulating energy-saving measures does not offer a short-term solution, the letter says. The municipalities also state that energy compensation via social assistance is practically unfeasible. “In addition, it is already taking too long to organize energy compensation for low incomes, while our residents need this compensation now.”

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