Factsheet for measure
NL-2022-1/2236
–
Updated
– measures in Netherlands
Extra energy allowance for lower incomes
Extra energietoeslag voor lagere inkomens
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Country
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Netherlands
, applies nationwide
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Time period
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Temporary, 01 January 2022 – 31 December 2023
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Context
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War in Ukraine
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Type
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Other initiatives or policies
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Category
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N/A
– Support for energy bills
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Author
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Thomas de Winter (Panteia) and Eurofound
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Measure added
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10 May 2022 (updated 12 June 2023)
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Background information
The government, together with municipalities, introduced a one-off generic compensation to help households with lower incomes cope with rising energy prices. Two Members of Parliament requested that the Cabinet of Ministers investigate how low-income households could receive an energy allowance through existing schemes. It was determined that the allowance required an amendment to an existing law, the Participation Act. This act was modified to provide municipalities with the authority to provide the energy compensation. The special categorical assistance clause of the Participation Act is used.
Other measures which are part of the set of measures to partly compensate for rising energy costs for households include
Reduction in VAT on energy and excise duty on petrol and diesel
,
Tax reduction on the energy bill and reduction of tax rate on electricity in 2022
and
More money for households to take energy-saving measures
.
Content of measure
At the end of 2021, the government announced it would set aside €3.2 billion to reduce energy tax. It also presented plans for a one-off energy allowance of around €200 per household to mitigate the impact of higher energy costs on people on incomes around the level of social assistance benefit. Older people on low incomes would also be eligible for the allowance. In March 2022, this one-off payment was raised to €800 per eligible household.
This program targets households with a low income (at or just above the social minimum). People on social assistance receive the amount automatically from their municipality. Other groups that are eligible - including older unemployed persons receiving an allowance, pension recipients without supplementary pension and self-employed with a low income – are not reached automatically and can apply to their own municipality.
Updates
The following updates to this measure have been made after it came into effect.
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02 June 2023
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A new bill has been prepared for the 2023 energy allowance, with the idea to make the allowance fit the income situation of people in this year. The target group of the energy allowance for 2023 will not automatically be the same as that of 2022 because the current income situation will be reconsidered.
The draft 2023 energy surcharge bill was submitted to the Council of State for advice and published in December 2022, with an expected effective date of June 2023. Due to some court rulings on students' entitlement to energy allowance and the advice of the Council of State, the Ministry of Social Affairs and Employment is now revisiting the 2023 bill.
Municipalities do have the option of already adding €500 of the 2023 energy allowance to the 2022 allowance. This to bridge the first period of 2023.
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02 January 2023
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The energy allowance will be made available for 2023 as well.
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09 August 2022
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The one-off energy allowance was increased from €800 to €1,300 in July 2022.
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Use of measure
Up to 800,000 households are said to be eligible for this allowance.
Target groups
Actors and funding
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Actors
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Funding
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National government
Local / regional government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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No involvement
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
-
No involvement
-
Main level of involvement: N/A
Involvement
No involvement.
Views and reactions
No involvement.
Sources
