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Factsheet for measure NL-2022-1/2236 Updated – measures in Netherlands

Extra energy allowance for lower incomes

Extra energietoeslag voor lagere inkomens

Country Netherlands , applies nationwide
Time period Temporary, 01 January 2022 – 31 December 2022
Context War in Ukraine
Type Other initiatives or policies
Category Measures to prevent social hardship
– Protection of vulnerable groups (beyond employment support)
Author Amber van der Graaf (Panteia) and Eurofound
Measure added 10 May 2022 (updated 05 September 2022)

Background information

The government, together with municipalities, introduced a one-off generic compensation to help households with lower incomes cope with rising energy prices. By motion of two Members of Parliament, the Cabinet of Ministers was requested to investigate how low-income households could receive an energy allowance through existing schemes. In a legal sense, the allowance required an amendment to an existing law: the Participation Act is modified so it provides municipalities with the possibility to provide the 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.

Target group: households with a low income (at or just above the social minimum). It was decided to opt for a generic payment because tailor-made solutions for this large group are not feasible for municipalities. People on social assistance are known to municipalities and receive the amount automatically. Other groups that are eligible - including older unemployed persons receiving an allowance, pension recipients without supplementary pension and self-employed with a low income – but who are not reached automatically, can apply to their own municipality.

Updates

The following updates to this measure have been made after it came into effect.

09 August 2022

The one-off energy allowance was increased from €800 to €1,300 in July 2022.

Use of measure

Up to 800,000 households are said to be eligible for this allowance.

Target groups

Workers Businesses Citizens
Does not apply to workers Does not apply to businesses Older citizens
Other groups of citizens
People on social benefits
People on low incomes

Actors and funding

Actors Funding
National government
Local / regional government
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

No involvement.

Views and reactions

No involvement.

Sources

  • 14 March 2022: Advies Raad van State inzake het voorstel van wet houdende wijziging van de Participatiewet in verband met het eenmalig categoriaal verstrekken van een energietoeslag aan huishoudens met een laag inkomen (zoek.officielebekendmakingen.nl)
  • 21 March 2022: Package of measures to cushion the impact of rising energy prices and inflation (www.government.nl)
  • 01 July 2022: Maatregelen om de hoge energieprijzen te compenseren (www.rijksoverheid.nl)

Citation

Eurofound (2022), Extra energy allowance for lower incomes, measure NL-2022-1/2236 (measures in Netherlands), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/NL-2022-1_2236.html

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