Consumer protection organizations call for relief: "People can no longer pay their bills"

Created: 08/27/2022, 22:57

By: Bettina Menzel

Business and consumer protection associations warn that many people in Germany can no longer pay their bills (symbol image).

© Udo Herrmann / IMAGO / UJ Alexander

Business and consumer protection associations wrote a letter to Economics Minister Habeck - and called for timely support for people on low incomes.

Berlin - The federal government wants to present a third relief package in the coming week, but the exact structure is still unclear.

In the face of high inflation and rising energy prices, business and consumer protection groups are warning that people can no longer pay their bills.

In a letter to Federal Minister of Economics Robert Habeck (Greens), they call on the federal government to quickly initiate further relief.

Business and consumer protection associations warn of "overburdening of economic conditions"

Business and consumer protection associations are alarmed.

An overload of the economic and social conditions must be avoided at all costs, it said in the letter from the GdW Federal Association of German housing and real estate companies, the Federal Association of Consumer Centers vzbv and the Municipal Utilities Association VKU, which was available to the German Press Agency on Saturday.

"More and more people are coming to the consumer centers who are desperate because they can no longer pay their bills," said vzbv boss Ramona Pop.

"It is all the more important that the federal government adopts another aid package, in particular to support private households with low incomes in a targeted manner."

More and more people are coming to the consumer centers who are desperate because they can no longer pay their bills.

Ramona Pop, vzbv boss 

As early as June 2022, almost every tenth person in Germany was overindebted.

According to the Institute for Financial Services iff, the over-indebtedness rate was 8.86 percent, which corresponds to around 3.08 million households or 6.16 million people.

Experience has shown that the effects of economic crises on consumers are delayed, iff boss Sally Peters pointed out.

Apparently, many people don't have much leeway to cut back: According to the iff study, housing costs accounted for more than 60 percent of household income for more than 10 percent of consumers

The economic and consumer protection associations propose these reliefs

From the point of view of the associations, the reduction in VAT on gas deliveries is a correct first step.

However, this must be accompanied by further measures, the letter said.

"We therefore urge the federal government to initiate additional relief steps for target groups with less financial means in an aid package that will take effect immediately at the beginning of the gas surcharge." The associations also proposed further "very short-term" relief.

These include, for example, limiting ancillary rental costs and energy assistance for low-income households.

For affected companies, there must be additional liquidity support and insolvency protection, it said.

Rising energy prices should encourage people to save energy, admitted VKU general manager Ingbert Liebing.

"However, the current prices, the extent and timing of the new burdens are overstating the financial possibilities of numerous consumers." Noticeable relief is needed quickly for lower and middle income groups far into the middle of society.

An ARD survey recently showed that many people in Germany are already cutting back significantly.

According to the DeutschlandTrend from mid-August, around 70 percent of those surveyed are already trying to reduce their energy consumption.

About half (47 percent) shopped less on a daily basis.

Above all, low earners with a household income of up to 1500 euros per month tightened their belts