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Energy Surcharge 2023: Will Low-income Households Receive Allowances?

Last year, households living around the minimum received a maximum of 1,300 euros in energy allowance as compensation for the high energy bill. But what about this year? We try to answer that as best as possible in this article.

We receive many questions about what will happen to the energy surcharge in 2023. The energy bill may be a bit lower than last year, but still high. And when the heating is turned on again, some households will run into problems.

Bill

Can low-income households receive an energy allowance again this year? The short answer to that question is: probably yes. But although many signals are green, that allowance can still not be applied for.

On 3 July, just before the fall of the cabinet, Minister Carola Schouten for Poverty Policy submitted a bill on the energy surcharge 2023. Schouten wants people who live at or just above the social minimum to be able to apply for a maximum of 1,300 euros once, just as was the case in 2022.

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What is energy surcharge?

Last year, the energy surcharge was a one-off compensation for people who were in the worst financial position in the Netherlands. In 2022, people with low incomes initially received 800 euros and later an additional 500 euros. They could pay the energy bill from that. It suddenly became much higher last year due to the outbreak of the war in Ukraine and inflation.

Support from left to right

The bill was submitted just before the summer recess and still has to pass the Senate and House of Representatives. The House of Representatives has just returned from recess and is meeting again, but the Senate is in recess until next Tuesday.

The energy surcharge for 2023 can therefore not be applied for yet, because it has not yet been definitively approved by parliament. But there is a very good chance that the government parties will support Schouten’s proposal. From left to right there is a majority for this in the Binnenhof

Municipalities decide for themselves

Whether you are eligible for the energy allowance of 2023 depends on the municipality in which you live. Municipalities are allowed to decide for themselves which people fall into the low-income group. The conditions for this may differ per city or village.

The government has drawn up a guideline: people who earn up to 120 percent of the social minimum. How much that is depends on your personal situation, for example whether you are with someone or whether you have already retired. Municipalities are also allowed to determine how much energy allowance will be paid per household.

Truus is still missing 1300 euros: ‘The energy surcharge is too complicated to apply to the municipality’

400 euros for students

The bill also deals with energy allowances for students. Students living away from home were left out last year, but Schouten wants students with a basic and supplementary grant to receive 400 euros in compensation this year, paid out by DUO. Students do not have to apply for this allowance themselves.

Students who take longer to complete their studies also receive this one-off allowance, says the Ministry of Social Affairs and Employment. These are students who no longer ‘get’ anything from DUO and who now borrow and whose parents have a low income. It is expected that DUO will transfer the allowance at the beginning of 2024.

Students demand energy allowance through the court: ‘Purely because I’m a student, I don’t get anything’

Payout this year

The Dutch Association of Municipalities (VNG) hopes to be able to pay out an energy allowance for 2023 this year. But who is entitled to the allowance is not yet known in every municipality.

Calling your municipality to ask whether you are eligible for an energy allowance does not make sense at the moment. This is because municipalities can only get started with the energy surcharge once the law has been approved by the Senate and the House of Representatives. But that seems only a matter of time.

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Also a price ceiling

It also applies in 2023 a price ceiling on energy for small consumers, such as households. This means that households pay a maximum rate for the consumption of gas and electricity up to a certain consumption. This measure is also to compensate for the high energy bill. The price cap will disappear on 1 January 2024.

Energy surcharge in 2024?

The chance that an energy supplement will be paid over this year therefore seems high. It is not yet clear whether energy allowances will also be paid for 2024. The NOS reported last week on the basis of ‘Hague insiders’ that no energy supplement can be applied for next year.

If the outgoing cabinet does not take additional measures, 1 million people may live below the poverty line next year, the Central Planning Bureau (CPB) warned last month. Demissionary Prime Minister Mark Rutte then said that he wants to prevent that. On Prinsjesdag, this year on Tuesday 19 September, the government’s plans will have to show exactly how.

Middle incomes also have to cut back due to high inflation and want support: ‘With us, costs are rising just as fast’

To ask? Ask them!

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2023-09-07 05:00:01
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