As early as autumn, Caritas feared that the exploding energy prices would result in high additional payments, electricity debts and power cuts due to unpaid bills. Those affected are already looking for advice because their down payment will increase after their previous supplier has stopped delivering and they are now dependent on basic services. “We expect demand to continue to increase,” says Sabine Schuster, Caritas specialist for social work.
Many low-income households are also threatened with “nasty surprises” with the annual bills that are being sent out one by one. Because despite rising electricity prices, the payments on account will only be increased after the annual accounts. In many households, however, the budget is “sewn to the brim”. After two years of the pandemic, in which Caritas has already recorded an increasing demand for debtor and social counseling, rising energy prices and inflation would then come “on top”.
At the beginning of the year, the nationwide Hartz IV standard rate rose by only three euros to 449 euros per month for single people. According to the social services department, the portion of around 36 euros per month included in the electricity costs has increased by just 25 cents. “The amount does not cover the real costs,” says Sabine Schuster. This is particularly difficult for people who are dependent on state support in the long term because they cannot simply save on other expenditure items.
Very few Munich residents will benefit from the heating cost subsidy from the Berlin coalition
The approximately 70,000 residents of Munich who receive Hartz IV benefits and the approximately 20,000 recipients of basic security in old age and those with reduced earning capacity are generally not hit by the rising heating costs. Provided that the expenses for this are at a reasonable level, they are taken over by the job center and the social welfare office in addition to the standard rate. However, those who are not entitled to one of these two state benefits and still only have a low income have to see for themselves how they can cope.
In any case, very few people in Munich will benefit from the heating subsidy that the Berlin coalition is planning. So far, according to a draft by the new Ministry of Housing, only a subsidy for recipients of housing benefit is provided. In Munich, there were just over 4,000 in 2020. According to this, people living alone would receive a one-time subsidy of 135 euros, two-person households 175 euros, and 35 euros for each additional roommate.
Significantly more people with low incomes are likely to benefit from the voluntary service, which the city council plenum has now decided, primarily at the instigation of the SPD/Volt parliamentary group. According to this, all Munich Pass holders should be able to receive an unbureaucratic and fast energy cost subsidy, provided that the legislator does not introduce a service for the same purpose. From July 1, 2022 to July 1, 2023, those whose income is below the poverty line (1350 euros for single people) could then receive a grant from the city of a maximum of 50 euros for one- and two-person households and a maximum of Apply for 100 euros for households with three or more people. Another help for them is the free electricity savings check for low earners, as offered by Caritas: on average, every household advised in 2020 was able to save 213 kilowatt hours of electricity.