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Study Finds Federal Relief Packages Overcompensating Some Households for High Energy Prices

According to a study, the federal government’s three relief packages to cushion high energy prices provided more financial support than was necessary for some households. This was the result of a study by the employer-related Institute of the German Economy (IW) in Cologne. For example, the state relieves an exemplary family with two children, which has a low annual income of 40,000 euros gross, more than the energy costs burden them.

If one parent in this sample calculation receives the full inflation compensation premium of 3000 euros from his employer and the other 1500 euros, and the family has been granted all possible relief benefits for 2022 and 2023, they will receive a total of 7655 euros more relief benefits than they would have needed. An exemplary single household with a low income (25,000 euros annual gross) is also overcompensated (plus 1386 euros) if it receives the full inflation premium of 3000 euros from the employer. Without a premium, the single is in the red. According to the IW, a well-earning family with two children (120,000 euros gross annual income) does not receive full compensation. She gets 1501 euros less than the additional charges.

2023-07-04 02:13:25
#money #state

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