Factsheet for measure
DE-2022-23/2226
–
Updated
– measures in Germany
Energy price lump sum allowance for people paying income tax
Energiepreispauschale (EPP)
Background information
In the course of the Russian aggression against Ukraine energy prices have been significantly rising, including, among others, for the heating of homes. In March 2022, the German government decided to adopt an energy relief package addressed to citizens, workers, and companies. The energy price lump sum (EPP) is a central part of the package.
Content of measure
The energy price lump (EPP) sum is a one-time payment for all German residents subject to income tax duties. The sum of €300 gross will be paid to employees and other persons paying income tax (self-employed, pensioners) via the salary payment of the employer (who will be compensated by the federal state) and is taxable. The one-time payment is meant to reduce the energy price burden for citizens. Since the EPP is taxable, the net benefit is dependent on the overall yearly income of the receiver and - due to the tax progression - higher for those with a smaller taxable income.
Updates
The following updates to this measure have been made after it came into effect.
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04 October 2023
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Employees subject to income tax received a one-off energy price allowance of 300 euros in September 2022.
Pensioners received a one-off allowance of €300 gross for increased energy costs in December 2022.
Students and vocational students were supported with a one-off energy price allowance of €200 in 2023.
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14 February 2023
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The measure is no longer active. Employed persons received a one-time energy price lump sum of €300 in September 2022. The payment was made via the employer's payroll.
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Use of measure
The EPP is designed as an automatic payment without the need to register or apply. It can thus be assumed that everyone eligible should finally receive it.
According to Deutsche Rentenversicherung, a total of around 19.7 million pensioners have received the energy price lump sum.
According to the Federal Ministry of Education and Research, a total of 2.84 million applications were successfully submitted by students and vocational students and around €567 million was paid out (as of 23 January 2024). A good 3.55 million people at over 4,500 educational institutions were eligible to apply. The one-off payment could be applied for between 15 March and 2 October 2023. Compared to other social benefits, the application rate is very high at almost 80 percent.
Target groups
Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Consulted
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Consulted
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Form
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Direct consultation outside a formal body
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Direct consultation outside a formal body
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: Peak or cross-sectoral level
Involvement
Social partners participated with other interested groups in an oral hearing of the competent committee of the national parliament (Bundestag).
Views and reactions
Both social partners supported the measure in general.
Sources
