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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 DK-2022-7/2381 – measures in Denmark

Extension of heat check subsidy for economically vulnerable groups

Varmechecken stiger

Country Denmark , applies nationwide
Time period Temporary, 11 February 2022 – 23 April 2023
Context War in Ukraine
Type Legislations or other statutory regulations
Category 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)

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 (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.

Use of measure

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.

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

Citation

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

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