Background information

The war in Ukraine has led to inflation which has caused energy prices to increase in Denmark. Russia is a big provider of gas, however due to the war Europe is currently facing a fossil energy crisis with increasing energy prices. The national government in Denmark is of the assumption that this development will continue. The increase in energy prices has a negative impact on economically vulnerable groups like students, low-income families, elderly people, etc.

To help these economically vulnerable groups in Denmark, the national government has increased the amount a household can get from the heating check, which is an already existing subsidy.

Content of measure

The heat check is a subsidy for the households that are most economically vulnerable, and will struggle the most from the price increase on heat. The heat check it is paid out automatically, and it is not necessary to actively apply for it.

Due to the war and the increasing prices, the Danish government has increased the heating check from DKK 3,750 to DKK 6,000 (€500 to €800). This is tax-free. Additionally, the national government increased the income limit for annual household income from DKK 550,000 to DKK 650,000 (€74,000 to €87,000) which means that around 100,000 more people will receive the subsidy. Beside the income limit for annual household at DKK 650,000, the criteria for receiving the heat check are based on whether the household is heated by one of the following: Individual gas furnace, user of a district heat system that uses above 65% gas (or a combination of gas and heat pump, that gives the same price evaluation), or the use of an electric radiator or heating pump as the primary heat source with an equivalent increase in price with a heat consumption above 1.500 kWh in December 2021.

Furthermore, the national government allocated an additional DKK 100 million (€13.4 million) for the municipalities’ increased expenses for different support schemes, to delegate to those who are affected by inflation.

Use of measure

The estimated number of citizens eligible to receive this subsidy was around 419,000 people. Before this measure circa 320,000 people was receiving the heat check.

In August 2022, a total of DKK 2.4 billion (€322 million) was paid out to almost 405,000 households. There were, however, examples of households within the target group which did not receive the heating check subsidy and examples of households outside the target group that received the heating check. By May 2023, an additional 34,500 households had applied for the heating check, since they considered themselves to be in the target group.

According to the state auditors, approximately DKK 83 million (€11 million) was paid out in error to 13,800 households where the total household income exceeded the set limit. In addition, approximately DKK 64 million (€8.6 million) were paid out in error to 10,700 households. In March 2023, a voluntary repayment scheme for households that had received the check in error was established, but by May 2023 only two households had repaid the check.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Does not apply to businesses	Other groups of 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	Unknown	No involvement
Form	Not applicable	Not applicable

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

• No involvement
• Main level of involvement: Unknown

Involvement

There was no involvement from social partners in designing or implementing and monitoring the measure.

Views and reactions

Social partners are supportive of the increase of the heat check.

Sources

• 11 February 2022: Dansk Energi om varmecheckaftale (www.danskenergi.dk)
• 30 March 2022: Over en milliard kroner til øget varmehjælp (www.regeringen.dk)
• 11 September 2022: Det skal du vide om varmechecken 2022 (www.aeldresagen.dk)
• 26 January 2023: Bekendtgørelse om engangstilskud efter ansøgning til husstande omfattet af ekstraordinære prisstigninger i fyringssæsonen 2021-2022 (www.retsinformation.dk)
• 01 June 2023: Tilfredsstillende udmøntning af varmechecken på trods af fejl i udbetalinger (www.ft.dk)