Another relief package from Germany’s governing coalition
In a previous issue, we reported on the relief package introduced by Germany’s governing coalition, on 23.2.2022, in view of rising energy costs and inflation. In view of the further dramatic increase in energy prices in the wake of the war in Ukraine, another relief package was approved, on 24.3.2022, that will commence on 1.6.2022. There now follows an overview of the measures.
(1) Energy price lump sum – All employees whose income is subject to tax will be paid a one-off energy price lump sum in the amount of €300 in the form of a grant in addition to their salary. This lump sum will be subject to income tax.
(2) Fuel price cuts – At filling stations, the energy tax included in the fuel prices will be cut by €0.30 per litre for petrol and by €0.14 for diesel for a limited period of three months.
(3) Nine-euro ticket – Funds will be made available to the German federal states so that they can provide the so-called nine-euro ticket for public transport. For a limited period of 90 days it will then be possible to purchase a ticket for €9 per month. It remains to be seen how this will actually be implemented in the federal states and in what time frame (following the initial reactions, there is now also talk of a ‘zero-euro ticket’). It is likely that vouchers would be issued for annual season ticket holders.
(4) One-off child bonus payment – An additional one-off bonus in the amount of €100 will be paid per child, in addition to child benefit, via the Family Benefits Office (Familienkasse) as quickly as possible.
(5) Heating cost subsidy – When compared with the first relief package, the heating cost subsidy has been doubled for housing benefit recipients, for apprentices and students in receipt of BAföG [a federal education assistance loan]. For example, housing benefit recipients will now get a one-off subsidy in the amount of €270.
(6) Subsidies for welfare benefit recipients – The one-off payment for welfare benefit recipients in the amount of €100, which had already been approved in the previous relief package, will be increased again by €100 per person.
Please note: Furthermore, the aim is to create a framework so that property owners will be able to replace their heating systems that are more than 20 years old. As of 1.1.2024, every newly installed heating system should, if possible, be 65% powered by renewable energies.