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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, 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 19 June 2023)

Background information

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.

Content of measure

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.

Use of measure

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 writes. According to the mayor’s office, nearly 12,000 residents applied for the raised support from 1 October 2022 to 19 January 2023 – reported,

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


The LIGA Trade Union was present at the meetings of FŐÉT - Budapest's interest-reconciliation council - where the subsidy was discussed.

Views and reactions

No views were expressed by social partners.


  • 31 August 2022: Budapest residents get utility bill support (
  • 14 September 2022: Budapest municipal decree 30/2020 on utility bill subsidies (
  • 22 January 2023: Utility bill support requests rise tenfold in Budapest (


Eurofound (2022), Budapest utility bill subsidy for low income households, measure HU-2022-40/2782 (measures in Hungary), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.