The traffic light government wants to support the population with numerous relief packages: who will benefit from them in January 2023.
Frankfurt/Berlin – Numerous households in Germany will receive the announced support for the increased prices in numerous areas in December 2022 and January 2023. “In order to mitigate the financial effects of the sharp rise in energy costs for people and the economy, the federal government quickly launched three relief packages with a total volume of around 95 billion euros to provide relief and social support,” the Federal Ministry of Finance announced in this regard.
However, pensioners, singles and families benefit differently from the relief packages: an overview of the price brakes, emergency aid and bonuses.
Relief packages: This aid will come in January 2023
- Gas price brake: For private households there will be a cap on gas prices from January 1st. This means that a maximum of twelve cents per kilowatt hour may be charged for 80 percent of the total consumption in the previous year. The reference month is September. The remaining 20 percent should be billed by the respective supplier at the “normal price”.
However, tenants who have not concluded a direct contract with a supplier only receive the gas price refund when the annual heating cost statement is made.
- Electricity price brake: For private households, there will also be a cap on electricity prices from January 1st. This means that a maximum of 40 cents per kilowatt hour may be charged for 80 percent of the total consumption in the previous year. In this case, too, September is the reference month. The remaining 20 percent should be billed by the respective supplier at the “normal price”.
- citizen money: Hartz IV is called citizen income from January 1st. The reform provides that the standard rate will be increased by around 50 euros to 502 euros per month. The allowances for additional earnings will also increase from 20 to 30 percent. All information, for example on the application or the amount, can be found here.
- housing allowance: From January 1st, the housing benefit will also increase in Germany. “The amount of housing benefit is expected to increase by an average of around 190 euros per month in 2023. That means more than doubling the previous housing benefit. It will rise from an average of around 180 euros per month (without reform) to around 370 euros per month,” the federal government announced.
- Second heating allowance: In view of the sharp price increases in heating costs, the federal government wants to increase the relief payments for around two million people on low incomes. When exactly the second heating subsidy will be paid out is not yet certain. A payout was originally planned for the end of 2022, but now a payout is planned for the end of January or the beginning of February 2023.
Relief packages: This aid was available in December 2022
- Energy flat rate: Pensioners already received the energy price flat rate in December 2022. The transfer includes 300 euros, which are subject to income tax. The date of the transfer by the German Pension Insurance is December 15th. Seniors get the payment because they weren’t included in the first relief package, which was paid out in September.
- Gas emergency aid: Some emergency gas aid was already paid out in December 2022. These vary in amount depending on the provider and contract constellation. Alternatively, the emergency aid is offset against the annual gas consumption. However, tenants only benefit from the emergency gas aid when the provider issues their next annual bill.
Consumers of natural gas and heat customers are to be exempted from the December down payment. This applies, for example, to the sole owner of a single house who has a direct gas supply contract with a supplier, but also to small and medium-sized companies. The relief amount should be credited.
(do with dpa/AFP)
