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 DK-2022-7/2381 – measures in Denmark
|Country||Denmark , applies nationwide|
|Time period||Temporary, 11 February 2022 – 23 April 2023|
|Context||War in Ukraine|
|Type||Legislations or other statutory regulations|
Responses to inflation
– Support for energy bills
|Author||Carsten Jørgensen (FAOS, University of Copenhagen), Anders Randrup (Oxford Research) and Eurofound|
|Measure added||20 May 2022 (updated 16 September 2022)|
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.
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 (from approx. €500 to €800), which is tax-free. Additionally, the national government has increased the income limit for annual household income from DKK 550,000 to DKK 650,000 (from approx. €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 heatpump, 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 has allocated an additional DKK 100 million (approx. €13.4 million) for the municipalities’ increased expenses for different support schemes, to delegate to those who are affected by inflation.
The estimated number of citizens eligible to receive this subsidy is around 419,000 people. Before this measure circa 320,000 people was receiving the heat check.
|Does not apply to workers||Does not apply to businesses||
Other groups of citizens
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
There was no involvement from social partners in designing or implementing and monitoring the measure.
Social partners are supportive of the increase of the heat check.
Eurofound (2022), Extension of heat check subsidy for economically vulnerable groups, measure DK-2022-7/2381 (measures in Denmark), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/DK-2022-7_2381.html
30 January 2023
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 Eurofoundâ€™s EU PolicyWatch database from January to September 2022.Article
12 September 2022
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
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.
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.