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Low incomes in particular suffer from high energy bills: ‘Further measures needed’

Door rising energy prices millions of households would expect significant increases in energy bills. During the general considerations, the outgoing cabinet has pledged to set aside 375 million to mitigate those costs for citizens. But experts say this isn’t enough to offset ever-rising energy bills.

Hugo Erken, economist at Rabobank, doubts whether the millions are enough. “I think politicians will have to look at further measures to offset the energy bill.” The National Institute for Budget Information (Nibud) also argues for more political measures to compensate for energy bills. “On the one hand, low incomes and social assistance need to be increased so that people with low incomes spend relatively less on energy bills,” says Gabrielle Bettonville. “On the other hand, energy prices have to come down. This can be done, for example, by doing something about excise duties.”

These solutions are necessary because, according to the NIBUD, this is a structural problem. “It’s about the people who are just short every month. Now it is the energy price, but next time it will be rising healthcare costs. The low incomes and the allowance system must be structurally different.”

High energy prices

According to Rabobank calculations, the energy bill of an average household will increase by about 900 euros next year. “Now households pay around 1500 to 1600 euros in energy, of which 1000 euros in gas,” says Erken. “If 900 euros are added to that, it is difficult for many households to afford.”

“It is precisely the low-income group that spends a relatively large amount of money on gas and energy bills,” Bettonville warns. “Some households spend more than 10 percent of their budget on energy bills. With these rising prices, that will become much more. That can lead to financial problems.”

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