Energy crisis: New citizens' allowance does not cover electricity costs
Created: 06/01/2023 06:34
By: Johannes Nuß, Fabian Pieper
Citizens' income does not completely cover electricity costs.
© Sina Schuldt/dpa
The new citizens’ allowance for 2023 replaces Hartz IV with immediate effect and is intended to provide even more targeted support to those in need.
But now it is clear: The standard rate is not enough for the electricity costs.
Berlin – The cost of energy, especially electricity and gas, has skyrocketed since the start of Russia's aggressive war in Ukraine.
Although prices on the stock exchanges have eased somewhat, electricity and gas are still very expensive in Germany at the moment.
The needy, who are dependent on Hartz IV or, from 2023, on citizen money, are particularly difficult.
Due to the energy crisis and inflation, the amount of the standard rate for citizen income was increased by 50 euros compared to Hartz IV.
But according to the comparison
portal Verivox
, the increase in citizen income in 2023 will not cover the high electricity costs.
New citizens' income is not enough for electricity costs in 2023: According to the comparison portal, expenditure is 25 percent too high
In January, unemployment benefit II (Hartz IV) became the new citizen benefit.
The standard rate for a single adult increases to 502 euros per month – 53 euros more than before.
At the same time, consumers are paying more for electricity than ever before.
As a result, recipients of the citizen's income have to spend an average of 130 euros more per year on electricity than the citizen's income provides for 2023 - and this despite the electricity price brake.
Citizen Income Standard Rates
502 euros for
single people
451 euros for spouses or partners in a
cohabitation
420 euros for children
aged 14 to 17
348 euros for children
aged 6 to 13 years
318 euros for children
up to and including 5 years
In 2023, citizen's income provides 511 euros per year for housing, energy and residential maintenance.
With an annual consumption of 1500 kilowatt hours of electricity, however, the average annual costs are 641 euros despite the electricity price brake.
This means that the electricity costs are 25 percent higher than the citizen's income in 2023.
Basic electricity supply: 668 cases of price increases in January - citizen income 2023 too low
Experts come to a similar assessment as the comparison portal.
"The amount estimated for the electricity costs is far too low," said Verena Bentele, President of the social association VdK to the
Tagesschau
.
This has not changed with the adjustment of the rule sets.
On the contrary: The problem has even increased due to the rising electricity prices.
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Because: In December 2022, consumers paid more for electricity than ever before.
Nevertheless, in January 2023 more than 660 basic suppliers will increase their electricity prices.
Around 7.6 million households in Germany are affected.
The average increases are 60.2 percent.
Some suppliers hit particularly hard.
How recipients of citizen's income 2023 can identify potential savings and save on electricity costs
The job centers are responsible for the payment of the citizens’ allowance.
Although they cover the heating costs at a “reasonable level”, according to a spokeswoman for the Federal Employment Agency, the electricity costs are redefined annually by the legislature, leaving the job centers no leeway to adjust the standard requirement.
If recipients get into financial difficulties due to the increased electricity prices, "the job centers can at least approve a loan".
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An expert has a few recommendations to prevent this from happening: "Many electricity customers will benefit from the electricity price brake in the coming year," says Steffen Suttner, Managing Director Energy at CHECK24.
“However, despite the electricity price brake, you should regularly check your electricity tariff in order to optimize the costs that are not capped.
The first new customer tariffs below 40 cents per kilowatt hour are already being offered in isolated cases and result in significant savings potential – even without an electricity price brake.”
