Germany is united and the federal government issues one again. With all the usual quibbles: the measures foreseen in the aid packages will help to cushion the increase in energy costs. You can read here how much help is being given to you.
Difficult times – for known reasons. But the federal government is realistic: the drastic rise in the cost of living is becoming a growing burden for many German citizens. But he is also optimistic. According to the traffic light coalition, the situation on the energy markets will improve in the medium and long term as alternatives to Russian gas are available. This is what he is working on.
Until then, the federal government will be generous and helpful. Motto: Nobody is left alone. As a result, it agreed on further measures to ease the burden on citizens and businesses in the form of what is now the third aid package. But like the other two, this one only creates a good mood to a limited extent. Prosecution: watering can principle, unfair, etc. Just the usual.
Partly significant relief
But the measures that have been taken actually reduce the burden on people who heat with gas, in some cases significantly, as the German Institute for Economic Research (DIW) discovered for “Zeit”.
In the study, a distinction was made between low, normal, better, high and high income families. These groups were then divided into singles, single parents and families.
DIW has taken into consideration all measures of all three relief packages that can be directly quantified: EEG withdrawal reduction, energy flat rate, child bonus, cold progression reduction, CO₂ price suspension, family allowances and allowances family members, tax deduction for pension contributions, VAT reduction for gas. The interventions for 2022 and 2023 are taken into consideration. Energy costs have been estimated on an annual basis.
However, the effects of the planned brake on the price of electricity and gas cap were not taken into consideration. Because their effects are not yet predictable or to be defined more precisely.
And here’s how the measures work:
low-income workers
Here an annual net income of € 35,732 is assumed for families, € 22,120 for single parents and € 17,016 for singles via the modified OECD scale of household equivalent net income.
The family: If gas costs were only to double, the additional costs of 1887 euros would be reduced to 105 euros as a result of the measures. According to the study, tripling to € 2,670 would leave a burden of € 809. When prices quadruple, the cost rises to 3453 euros. The family would therefore have to pay 1,513 euros alone.
single parent: If doubled: from 1066 to 113 euros, if tripled from 1650 to 639 euros and if quadrupled from 2235 to 1165 euros.
Single: If doubled: from 869 to 270 euros, if tripled from 1388 to 737 euros and if quadrupled from 1906 to 1203 euros.
Normal earners
Here an annual net income of € 55,128 is assumed for families, € 34,127 for single parents and € 26,251 for singles through the modified OECD scale of household net equivalent income.
The family: If doubled: from 2322 to 368 euros, if tripled from 3386 to 1325 euros and if quadrupled from 4450 to 2282 euros.
single parent: If doubled: from 1202 to 394 euros, if tripled from 1743 to 881 euros and if quadrupled from 2284 to 1367 euros.
Single: If doubled: From 1140 to 354 euros, if tripled from 1628 to 883 euros and if quadrupled from 2216 to 1411 euros.
higher incomes
Here we assume an annual net income of € 74,942 for families, € 46,393 for single parents and € 35,688 for singles through the modified OECD scale of household equivalent net income.
The family: If doubled: from € 2831 to € 897, if it tripled from € 3991 to € 1939 and if it quadrupled from € 5150 to € 2982.
single parent: If doubled: from 1488 to 523 euros, if tripled from 2039 to 1019 euros and if quadrupled from 2591 to 1514 euros.
Single: If doubled: from 1181 to 349 euros, if tripled from 1756 to 867 euros and if quadrupled from 2332 to 1385 euros.
high income
Here an annual net income of € 100,234 is assumed for families, € 62,050 for single parents and € 47,734 for singles through the modified OECD scale of household equivalent net income.
The family: If doubled: from 2440 to minus 24 euros, if tripled from 3440 to 875 euros and if quadrupled from 4439 to 1774 euros.
single parent: If doubled: from 1537 to 226 euros, if tripled from 2154 to 781 euros and if quadrupled from 2772 to 1336 euros.
Single: If doubled: from 1667 to 513 euros, if tripled from 2537 to 1295 euros and if quadrupled from 3407 to 2078 euros.
the best earnings
Here we assume an annual net income of € 238,571 for families, € 147,685 for single parents and € 113,599 for singles through the modified OECD scale of household net equivalent income.
The family: If doubled: from 2979 to 86 euros, if tripled from 4278 to 1269 euros and if quadrupled from 5577 to 2453 euros.
single parent: If doubled: from 1870 to 305 euros, if tripled from 2673 to 1037 euros and if quadrupled from 3476 to 1768 euros.
Single: If doubled: from 2060 to 783 euros, if tripled from 3191 to 1813 euros and if quadrupled from 4322 to 2843 euros.
Conclusion
The relief is taking effect. But not just for middle and low incomes. The state offsets a significant portion of the additional energy costs, even among the wealthy. Even (very) high-income households get a helping hand in alleviating them from rising energy costs. This is mainly due to the tax reduction measures in the relief packages. Because families with high incomes usually pay more taxes, but are also relieved in the event of tax cuts.
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