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 – Updated – measures in Hungary
| Country |
Hungary
, applies locally
|
| Time period | Open ended, started on 01 October 2022 |
| Context | War in Ukraine, Cost of Living Crisis |
| Type | Legislations or other statutory regulations |
| Category |
Promoting the economic, labour market and social recovery into a green future
– Support for energy bills |
| Author | Nóra Krokovay (KOPINT-Tárki) and Eurofound |
| Measure added | 29 August 2022 (updated 23 January 2025) |
The utility subsidy that was enacted through local government decree 30/2020 was extended to continue helping Budapest residents pay their utility bills. The subsidy will continue to be provided for a 12 month period to people with low incomes and/or low pensions. However, people will not receive double the amount of financial support for their energy bills.
The amount of the subsidy is HUF 48,000 (about €120) per year. 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.
The following updates to this measure have been made after it came into effect.
| 01 January 2024 |
Budapest municipality updated its municipal decree 30/2020 to extend the utility bill support to low-income Budapest residents. The subsidy caps have not been raised, but the income threshold for eligibility was upped to HUF 125,000 (about €312) a month for full subsidy and HUF 214,000 (about €535) a month for half subsidy |
Deputy Mayor Ambrus Kiss said that the support would cost HUF 1.2 billion (€3 million) for the Budapest Municipality budget, and about 150,000 households are estimated to be supported portfolio.hu writes. According to the mayor’s office, nearly 12,000 residents applied for the raised support from 1 October 2022 to 19 January 2023 – telex.hu reported,
| Workers | Businesses | Citizens |
|---|---|---|
| Does not apply to workers | Does not apply to businesses |
Pensioners
People on low incomes |
| Actors | Funding |
|---|---|
|
Local / regional government
|
Local funds
|
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:
The LIGA Trade Union was present at the meetings of FŐÉT - Budapest's interest-reconciliation council - where the subsidy was discussed.
No views were expressed by social partners.
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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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.