710,000 households benefit: Ampel is planning a large subsidy for heating costs

Created: 01/11/2022, 11:37 AM

From: Ines Baur

Housing Minister Klara Geywitz (SPD) is planning a heating subsidy for recipients of housing benefit.

© Marcus Brandt / dpa

The prices for energy, oil and gas are climbing to record highs.

If you have to save, you don't even think about turning up your heating - or you fear the additional payment of operating costs.

That should prevent a grant.

Berlin - recipients of housing benefit shouldn't have to freeze in winter and shouldn't have sleepless nights with the next utility bill.

Housing Minister Klara Geywitz (SPD) plans to support housing benefit recipients with a grant.

A corresponding draft law was sent to the federal states and associations.

The Ampel coalition decided on the one-time grant after heating costs had practically exploded last autumn.

"This should keep living and heating affordable and offset the additional costs from the cold winter months," says Tagesschau in a key issues paper from the ministry.

The proposed lump sum is part of the housing allowance that low-income households receive. 

Heating allowance - 135 euros for singles, 175 euros for two-person households

A one-person household is to be supported with 135 euros, a two-person household with 175 euros.

For each additional roommate a further 35 euros are provided.

According to the key point paper, the amount of the grant was empirically derived on the basis of simulation calculations by the Cologne Institute for Economic Research.

Heating costs for housing benefit households from 2020 were carried forward with the expected price increases.

Around 710,000 households are expected to benefit from the one-time grant.

The prerequisite for the grant is that the household has received or is receiving housing benefit for at least one month during the heating phase between October 2021 and March 2022.

All in all, the aid should cost the federal government around 130 million euros. 

Heating subsidy - criticism from the consumer advice center

Criticism of the planned heating cost subsidy comes from the consumer advice center, which considers the planned subsidy to be too low.

For many households, the money will not be enough to compensate for the sharp rise in heating costs, says Klaus Müller, head of the Federation of German Consumer Organizations, the Handelsblatt.

It is not even clear how cold the winter and thus the heating bill will be. 

Draft heating subsidy in the cabinet at the end of January

Klara Geywitz (SPD) announced that the planned grant will be paid out in the summer.

At best, before the utility bill ends up in the mailboxes.

According to the draft, the grant is intended to alleviate the additional burden that was decided in the cabinet at the end of January and then introduced into the Bundestag via the government parliamentary groups.

The money should not be counted towards other social benefits.