European Foundation
for the Improvement of
Living and Working Conditions

The tripartite EU agency providing knowledge to assist
in the development of better social, employment and
work-related policies

EU PolicyWatch

Database of national-level policy measures

Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure CZ-1995-40/2222 – measures in Czechia

Allowance to cover elevated monthly housing costs for low-income households

Příspěvek na bydlení

Country Czechia , applies nationwide
Time period Open ended, started on 01 October 1995
Context COVID-19, War in Ukraine
Type Legislations or other statutory regulations
Category Measures to prevent social hardship
– Keeping or obtaining a safe home
Author Aleš Kroupa (Research Institute for Labour and Social Affairs)
Measure added 09 May 2022 (updated 11 August 2022)

Background information

Measures to facilitate citizens' access to energy services include Act No. 117/1995 Coll., on State social support, under which the so-called Housing allowance is paid. The Housing allowance is intended for a low-income family or individual living on heir own or rented flat or house and who is also registered as a permanent resident.

Content of measure

A Housing allowance of the so-called standard cost (adjusted annually by government regulation) is granted to an applicant if the proven monthly housing costs are more than 30% of the monthly household income. In Prague, this is 35%.

Household income is determined from the income of all persons who have a declared permanent residence in the household. Income includes net business income, net employment income, unemployment benefit, sickness insurance benefits, parental allowance, child benefit, and all types of pension.

Monthly housing costs, against which household income is compared, include the cost of gas, electricity, heating, hot water, water and sewerage, television and radio, municipal waste collection, solid fuels. Rent is also included in the costs.

Act No. 17/2022 Coll., amending Act No. 117/1995 Coll., on State social support was approved in January 2022. The amendment modifies the conditions of the housing allowance as follows:

  • extends the possible relationships to the apartment to include sub-renting and servile use of the apartment (previously only owner or tenant),
  • now also includes holiday homes where the owner permanently lives,
  • increases the amount of the normative housing costs (depending on the size of the town and the number of household members) by approximately CZK 1,000–⁠2,000,
  • allows the government to further increase the standard cost exceptionally in 2022 if there is a significant change in energy costs compared to 2021.

Use of measure

According to the Statistical Yearbook of Labour and Social Affairs, the number of granted benefits, and also the annual volumes of the paid Housing allowance grew rapidly from 2010 until 2016, with the number of benefits going from 1,433,787 to 2,652,694 and amounting from €139,708,304 to €343,641,216. At the same time as the normative housing costs increased. Thanks to faster wage growth and slower growth of the normative housing costs, the number of granted benefits and the corresponding annual volume of paid contributions began to decline from 2017 until 2020, from 2,490,817 to 1,870,989 benefits and amounting from €328,625,636 to €263,657,919.

Target groups

Workers Businesses Citizens
Does not apply to workers Does not apply to businesses Other groups of citizens
People on social benefits
People on low incomes

Actors and funding

Actors Funding
National government
Other

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Consulted Consulted
Form Any other form of consultation, institutionalised (as stable working groups or committees) or informal Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: Peak or cross-sectoral level

Involvement

Based on the law, social partner organizations are commentary in the legislative process.

Views and reactions

Opinion of the social partners on Act No. 117/1995, Coll. about state social support is not known.

Sources

Citation

Eurofound (2022), Allowance to cover elevated monthly housing costs for low-income households, measure CZ-1995-40/2222 (measures in Czechia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/CZ-1995-40_2222.html

Share

Eurofound publications based on EU PolicyWatch

30 January 2023

 

Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. As winter approaches, preventing and addressing energy poverty becomes a priority. This article summarises the policy responses as reported in Eurofound’s EU PolicyWatch database from January to September 2022.

Article

12 September 2022

 

First responses to cushion the impact of inflation on citizens

Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.

Article

12 September 2022

 

Policies to support EU companies affected by the war in Ukraine

This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.

5 July 2022

 

Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.

Article

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.