Factsheet for measure
DE-2022-23/3030
– measures in Germany
Heating cost allowance I and II
Heizkostenzuschuss I und II
Background information
Russia's war of aggression on Ukraine and high inflation are leading to enormous price increases for heating, hot water and electricity. The federal government responded to the sharp rise in energy costs and the associated financial burdens with financial relief for citizens. The allowances target households receiving housing benefit and for recipients of educational assistance, and are intended to relieve these target groups.
The heating cost allowance I and II are part of the second and third relief packages of the federal government and are regulated by the Heating Cost Subsidy Act.
Content of measure
The heating cost allowance are granted to people with low incomes. These are recipients of the housing allowance, students that receive grants under the Federal Training Assistance Act (BAföG), trainees receiving the vocational training allowance or training allowance, as well as those with a maintenance allowance. The heating cost allowance I and II are both one-time payments. The payments are made automatically for all groups of recipients by the responsible authorities of the States (Länder) or the Federal Employment Agency. A separate application is not necessary.
The law for the first heating cost allowance came into force on 1 June 2022.
Amount of the heating cost allowance I was introduced as follows:
For recipients of the housing allowance, the heating allowance is staggered according to household size:
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for one person €270
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for two persons €350
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for each additional person €70
For the other recipients, the heating allowance is uniformly €230.
The law for the second heating cost allowance passed into law on 16 November 2022.
Amount of the heating cost allowance II was again differentiated by target groups:
For recipients of the housing allowance, the heating allowance is staggered according to household size:
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for one person €415
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for two persons €540
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for each additional person €100
For recipients of benefits under BAföG and of training allowance and vocational training allowance, the heating cost allowance is uniformly €342.
The costs for the heating allowance are borne entirely by the federal government. The federal government provides around €380 million for the subsidy.
Use of measure
The heating cost allowance is intended to relieve around 2.1 million citizens of their energy costs. Of these, 1.6 million people are recipients of housing allowance in 710,000 households and about 370,000 recipients of the Federal Training Assistance Act (BAföG) as well as 65,000 trainees with vocational training assistance or training allowance as well as 75,000 upwardly mobile workers with maintenance allowance.
According to figures released by the German government on 6 July 2023, a total of around two million people on low incomes received a second heating allowance of at least €345. Of these, 1.5 million were entitled to housing benefit, in particular families, single parents, senior citizens and around 550,000 students and trainees with BAföG.
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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Unknown
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Unknown
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Form
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Not applicable
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Not applicable
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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: N/A
Involvement
The association's comments are part of a public hearing held by the Committee on Housing, Urban Development, Building and Communities on 17 October 2022.
Views and reactions
The invited experts agreed that the new one-off payment would relieve low-income earners quickly and non-bureaucratically from rising heating costs.
The business side is represented by the Federal Association of German Housing and Real Estate Companies and demands a simplification of the application procedure, e.g. through digitalisation.
The German Tenant's Association, which represents the interests of tenants, called for further, universal assistance to cushion the high energy costs
Sources
