65 billion euros
Agreed: This will be included in the third relief package
© Nico Bekasinski / Adobe Stock
The traffic light coalition agreed on the new federal package of measures on Sunday. The population and companies are to be relieved of more than 65 billion euros because of the rising costs.
It is already the third relief package that the federal government is launching as a result of inflation. A total of 95 billion euros have been planned for all three packages. Chancellor Olaf Scholz emphasized at a press conference: “I am very aware that many citizens are very concerned about their future”, which is why the population itself and small companies must now be supported, because: “They are very worried about high prices for electricity and gas, increased living costs – everything that is associated with the concept of inflation,” said the SPD politician.
What’s in the relief package?
You can read here where measures are being taken to help families, students, pensioners or small companies, for example.
Housing benefit entitlement becomes easier to access
As a concrete relief, more people should be able to benefit from housing benefit. The circle of beneficiaries will be expanded to two million citizens. Before that it was 700,000. The change should also permanently include heating costs, according to Olaf Scholz. “This helps those who have a small income as pensioners or as employees” – and is therefore a decisive measure, according to the Federal Chancellor.
In the course of this, recipients should also receive a one-off heating cost subsidy in the period from September to December 2022, as the Tagesschau reports:
- 415 euros for a one-person household,
- 540 euros for two people
- and for each additional person an additional 100 euros.
Hartz 4 becomes citizen money
For people without income, there should be a basic income reform. This will be adjusted on January 1, 2023. According to the daily news, the standard rate will be increased to 500 euros per month in the wake of inflation. It was previously 449 euros for recipients. In the future, the federal government wants to base its calculations on the inflation rate and price trends and no longer on outdated assessment bases, said Scholz.
Energy flat rates for the population
Seniors who have already retired should receive a one-off energy allowance of 300 euros on December 1st. Employed people also receive 300 euros. Students and trainees are relieved of 200 euros.
Child benefit will be increased
At the beginning of the year, families should receive an additional 18 euros per month for the first and second child. That is a maximum of 432 euros per year.
New local transport ticket
The federal government is prepared to provide the federal states with 1.5 billion euros annually. With the help of this cost injection, a nationwide local transport ticket is to be made possible. However, the concept still has to be worked out between the federal and state governments. According to the Tagesschau, the goal is a price between 49 euros and 69 euros per month.
Tax-free additional payments
Employees can hope for financial support from their employers in the coming period. Because they can send their employees a one-time payment of 3,000 euros free of taxes and duties.
Electricity price brake
An electricity price brake will be introduced to relieve households. This is to be borne by skimming off the rising profits of energy companies. Because on the electricity market there are “accidental profits, excess profits that are made by producers who can simply use the situation that the very expensive price for gas determines the price of electricity, and they therefore earn a lot of money,” explained Chancellor Olaf Scholz .
There should therefore be a revenue cap for those companies that are not dependent on expensive gas for their electricity production in order to keep prices low for the population. The government also wants to talk about this possibility across the EU.
High costs, but no new borrowing
According to Finance Minister Christian Lindner, the third relief package will be launched without additional new debt. The federal budget for 2023 would, as planned, respect the rules of the debt brake, according to the daily news. There is therefore no need for a supplementary budget for the coming year. The measures are already included in the previous budget plans of the federal government. Around 32 billion euros could be mobilized in the federal budgets for 2022 and 2023, said Lindner. The FDP politician put the planned skimming off of the energy companies at a two-digit billion amount.
Sources used: bundesregierung.de, tagesschau.de