Citizens’ allowance, energy flat rate and Co. – All information about the third relief package

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Created: 09/23/2022 04:51 am

Of: Constantine Hoppe

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The third relief package comes after weeks of debate. Who benefits most from the new measures.

Berlin – After weeks of debates and arguments about a third relief package for citizens in Germany, the traffic light coalition has reached an agreement. The traffic light coalition’s third relief package is said to have a total volume of more than 65 billion euros. This emerges from the resolution paper of the coalition committee of the SPD, Greens and FDP, which was published in Berlin on Sunday (4 August).

The envisaged measures “relieve all households – including pensioners, students, technical students and trainees” according to the decision paper.

Federal Chancellor Olaf Scholz comes to the press conference on the 3rd relief package alongside Omid Nouripour, Saskia Esken and , followed by government spokesman Steffen Hebestreit. © Michael Kappeler/dpa

Third relief package: pensioners and students receive one-off payments

For pensioners and students, the relief package includes one-off payments. Pensioners should keep 300 euros once, students 200 euros. Support for children is also to be improved, with child benefit being increased by 18 euros, said Chancellor Olaf Scholz (SPD). The increase in child benefit applies to the years 2023 and 2024.

More people than before are to receive housing benefit. The group of people entitled to housing benefit is to be expanded to two million citizens, so that more people are entitled to claim in times of sharply rising energy costs. The housing benefit will also include a permanent climate and heating cost component to cushion rising energy prices more, explained the Federal Chancellor.

Third relief package: These measures are planned

  • One-off payments of 300 euros for pensioners
  • One-time payments of 200 euros for students
  • Increase in child benefit by 18 euros per month
  • Major reform of the housing allowance, including expansion of those entitled to it
  • Heating subsidy for those entitled to housing benefit
  • Transition from Hartz IV to citizen’s income, including an increase in the standard rate to 500 euros
  • Electricity price brake is introduced
  • Tax-free additional payments from employers to employees as an inflation premium
  • Creation of a nationwide, inexpensive local transport ticket

Third relief package: Excess profit tax for energy companies is to come

For the coming heating period from September to December 2022, a one-off heating subsidy is to be paid to recipients of housing benefit. After that, the subsidy for those entitled to housing benefit will be permanently integrated into the housing benefit. The subsidy should be 415 euros for single people, 540 euros for couples, and an additional 100 euros for each additional person in the household.

In order to relieve households of electricity prices, an electricity price brake is to be introduced. This is to be financed by taxing profits from energy companies: “Coincidence profits” due to high energy prices at companies would be “skimmed off,” said Scholz. The Federal Government is initially relying on a common route at European level. But the coalition partners are also prepared to implement a so-called excess profit tax at the national level.

Third relief package: Tax-free additional payments and successor to the 9-euro ticket

In addition, employers should be able to make additional payments to their employees tax and duty-free due to the high prices in Germany. Amounts of up to 3,000 euros are to be exempt from tax and social security contributions. FDP leader Christian Lindner said: “We make a tax-free one-off payment, so an inflation premium is possible.”

Successor 9-euro ticket
The successor for the 9-euro ticket is to be regulated. (Iconic image) © Sven Hoppe/dpa

The package of measures also includes citizen income: Hartz IV will be converted into citizen income on January 1, 2023 and significantly increased to a standard rate of around 500 euros by taking inflation into account in a timely manner. Single people currently receive 449 euros as basic security per month.

The traffic light coalition also wants to create a new nationwide local transport ticket as a successor to the 9-euro ticket: the federal government is prepared to make up to 1.5 billion euros available annually for this, “if the federal states provide at least the same amount Make it available,” said the traffic light coalition. The aim is to implement a ticket in the price range of around 49 to 69 euros per month.

Third relief package: long consultations between the coalition partners necessary

The third relief package was negotiated for around 22 hours from Friday morning (September 2nd), as the coalition partners announced. The first two relief packages of the traffic light coalition had a total volume of around 30 billion euros – together with the third package, a total of around 95 billion euros is reached. Many of the previous measures expired at the end of August. (con/dpa)

The article is in German

Tags: Citizens allowance energy flat rate information relief package

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