Background information

Under a ‘Call for Support,’ published by the government agency Szociálpolitikai Innovációs Közhasznú Nonprofit (Public-Interest Innovation in Social Policy Nonprofit – SZIN Kft.), civil organisations who are providing social services and/or child protection services or operating temporary homes for families can apply for compensation for energy bills from the winter of 2022.

Content of measure

Applications must be submitted to the government agency SZIN. A list of 22 eligible services are included in the call. Only non-profits who are not state-run are eligible. Churches are handled separately. Applications are decided by SZIN on a case-by-case basis, with special notice given to territorial differences in access to services. Bills are only accepted for the months of October, November and December 2022 and compensation is provided for 80% of the difference between their usual and higher amount. Compensation will occur until the allocated budget is depleted. The maximum amount compensated is HUF 388,160 (about €1,035) per client receiving social services in the applicant institution. Applications can be submitted until 15 July 2023 and all transfers will be completed by 31 July 2023.

The budget for the compensations was set at HUF 1 billion.

Use of measure

The budget for the compensations was set at HUF 1 billion in 2022.

HUF 5.3 billion will be budgeted for the energy bill compensation of civil groups providing a welfare service in 2023, a state secretary at the ministry of interior said, adding that 12,700 beneficiaries living in 350 institutions such as care homes and other social-service facilities will be provided for in this way.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Other businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Public support service providers	National 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

The Hungarian Association of Social Workers (SZMME) and 32 non-governmental social service operators proposed to the state secretary in charge of care policy in March 2023 that instead of the three-month one-off compensation scheme, the regular subsidy to institutions should be raised across the whole sector. "The one-off compensation scheme did not reach all care providers in need, and many of them are still struggling with high energy bills and are threatened to close," head of the SZMME said in the letter. The energy cost-related subsidy should be HUF 570 (€1.54) per client per day, they said. The proposal was not adopted.

Views and reactions

An MP asked the Minister of the Interior, who is responsible for social care, about the reason for the cost of care doubling in some seniors' homes. They claimed energy costs.

• State-run social care institutions received HUF 11.424 billion from central funds in 2022 an advance of HUF 12.474 billion for 2023 to compensate for high energy costs
• Under government decree 1564/2022 churches received compensation for increased energy costs in their social service institutions in 2022 and HUF 14.434 billion has been earmarked for this purpose in 2023 under govt decision 1066/2023
• Local governments could ask for a renewal of their energy contracts at below-market prices as of 31 December 2022
• Local governments with a population of less than 10,000 that operate nursing homes received a rise in their facility operating subsidy from 1 January 2023 due to increased energy costs. The budget for this increase was HUF 3,162.4 billion.
• Local governments with a population of more than 10,000 received a general subsidy based on one-on-one agreements.

The head of the SZMME told HVG online that it did not seem fair that support was more favourable for churches for the same kind of care services that civil organisations are providing.

Sectors and occupations

This case is not occupation-specific.

Sources

• 22 November 2022: Támogatási Felhívás (Call for Support) (nfszk.hu)
• 16 March 2023: Civil orgs' letter to state secy Fulop (szmme.hu)
• 07 April 2023: Bankrupted: Nursing and care homes shutting down (hvg.hu)
• 18 April 2023: Ministry response to MP question on social care (www.parlament.hu)
• 25 April 2023: Ministry response to SZMME letter (szmme.hu)
• 02 August 2023: Energy bill support for civil groups providing welfare (hirado.hu)