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Federal Government reaches agreement on support package to help pay energy bills

After a meeting that lasted most of the day the Federal Government has reached agreement on measure to help families and business through the current energy crisis. Under the measures anyone with an energy contract with variable price and those that extended their fixed price contract after 1 October 2021 will receive 135 euro/month reduction in their gas bills in November and December this year. Similarly, they will receive a state-financed reduction of 61 euro/month in their electricity bills in November and December. 

 

The price reduction will not be offered to those on the lowest incomes as they are already entitled to cheaper energy through what is known as the “social tariff”.

Single people with taxable incomes of 62,000 euro/annum or less won’t have to pay the state assistance for their energy bills back through a special levy that will be added to those on higher incomes’ tax bills. The same is true of couples with taxable incomes of 125,000 euro or less. The level of income up to which the support won’t have to be paid back increases by 3,700 euro per dependent person. For example a single father with two children will be able to have a taxable income of 69,900 before he would have to pay the support back. This would be 136,100 euro in the case of a couple with 3 children.

Around 15% of the active population will pay back the support through a levy on their tax bill. Around 60% of the population will be entiled to help.

In addition to this the value of the one-off heating oil check design to help those that heat their homes with oil is set to be increased from 225 euro to 300 euro.  

Measures for companies and the self-employed

In addition to households, the Federal Government has agreed measures to assist businesses and the self-employed. One of the measures is the postponement of the deadline for the payment of employers’ social security contributions and tax.

Agreement has also been reached on temporary unemployment for workers that have to be laid off due to energy-related issues and on minimum duty on gas and electricity in November and December. Furthermore, there will a moratorium on bankruptcies initiated at the behest of a supplier.

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