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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 HU-2022-40/2782 – measures in Hungary

Budapest utility bill subsidy for low income households

Budapesti rezsitámogatás

Country Hungary , applies locally

    • – HU11 Budapest
Time period Open ended, started on 01 October 2022
Context War in Ukraine
Type Legislations or other statutory regulations
Category Responses to inflation
– Support for energy bills
Author Nóra Krokovay (KOPINT-Tárki) and Eurofound
Measure added 29 August 2022 (updated 13 September 2022)

Background information

The earlier system of utility bill subsidies described under local government decree 30/2020 for Budapest residents in need has been extended, and the amounts awarded were doubled in view of the current energy crisis. The subsidy is given for 12 months, criteria include having low income and/or low pension.

Content of measure

The amount of the subsidy is HUF 48,000 (about €120) per year and residents whose application is approved receive the subsidy through write-offs in their bills. The income threshold for eligibility is HUF 100,000 (about €250) a month or less. Those who earn above this threshold but below HUF 170,000 a month are eligible for half the subsidy amount. Gas and electricity were added to the earlier circle of bills supported: district heating, water and sewage bills. Now residents can choose two of these utilities for which their bills are supported by deducting HUF 2,000 a month from each utility bill.

Use of measure

Deputy Mayor Ambrus Kiss said that the support would cost HUF 1.2 billion (€3m) for the Budapest Municipality budget, and about 150,000 households are estimated to be supported portfolio.hu writes.

Target groups

Workers Businesses Citizens
Does not apply to workers Does not apply to businesses Pensioners
People on low incomes

Actors and funding

Actors Funding
Local / regional government
Local funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

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

  • No involvement
  • Main level of involvement: N/A

Involvement

No involvement was reported.

Views and reactions

No views were expressed by social partners.

Sources

Citation

Eurofound (2022), Budapest utility bill subsidy for low income households, measure HU-2022-40/2782 (measures in Hungary), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/HU-2022-40_2782.html

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