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-2022-36/2462 Updated – measures in Czechia

Umbrella Against Inflation

Deštník proti drahotě

Country Czechia , applies nationwide
Time period Temporary, 01 September 2022 – 31 December 2022
Context War in Ukraine
Type Other initiatives or policies
Category N/A
– Increasing income in general
Author Soňa Veverková (Research Institute for Labour and Social Affairs) and Eurofound
Measure added 22 February 2023 (updated 25 July 2023)

Background information

The government responded to the increase in prices during the year 2022 by launching this programme in October 2022. The programme included a one-time child benefit intended to help parents cope with soaring inflation, rising food prices, energy, fuel, and school or childcare expenses

It also included an allowance for energy and waived taxes for renewable energies is a subsidy from the state budget for energy suppliers. Already existing benefits such as housing allowance, housing supplement, and allowance in material needs have also become part of the program.

Content of measure

Based on the state's contribution to the given household, the energy supplier reduced the electricity, gas, and heat prices. The subsidy was reflected for the first time in payments for October 2022. At the same time, the waiver of the fee for renewable sources was applied, which is part of the price of electricity and amounts to CZK 495 (€20) for each megawatt hour of electricity. From 1 January 2023, the contribution will no longer apply. It was replaced by a cap on energy prices valid throughout 2023.

The allowance was provided to parents with parents under the age of 18 and whose gross annual income does not exceed CZK 1,000,000.

For October to December 2022, households received the energy allowance in the amount of CZK 2,000 to 3,500, depending on the type of electricity price distribution rate. Every household that was a consumer of gas, electricity, or heat was entitled to the subsidy.

The assignment of mentioned benefits, particularly housing allowance, takes into account the applicant's income situation and the housing and energy costs.

Updates

The following updates to this measure have been made after it came into effect.

01 January 2023

The Umbrella Against Inflation package of measures was effectively terminated on 31 December 2022. The benefit provided to families with children was a one-time benefit. The measures dampening the amount of energy charges were replaced by the Cap of electricity and gas prices from 1 January 2023. Furthermore, benefits such as housing allowance and housing supplement are long-standing regular benefits of the state social security network.

Use of measure

The one-time child allowance was sent on 31 December 2022. It spent provided€280,875,000 to 1,348,198 children.

As of 31 December 2022, €725,000,000 was spent on the energy allowance.

For the housing allowance and the housing supplement for August to December 2022, €87,023,000 and €33,574,000 were spent.

Target groups

Workers Businesses Citizens
Does not apply to workers Does not apply to businesses Applies to all citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

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

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

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

  • No involvement
  • Main level of involvement: N/A

Involvement

No involvement.

Views and reactions

Unknown

Sources

  • 22 February 2023: Pomoc MPSV: sociální dávky v číslech (www.mpsv.cz)
  • 22 February 2023: Plnění státního rozpočtu ČR za prosinec 2022 (www.mfcr.cz)

Citation

Eurofound (2023), Umbrella Against Inflation, measure CZ-2022-36/2462 (measures in Czechia), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/CZ-2022-36_2462.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. 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.

Article

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.