Heating, electricity, hot water: this is how badly poor households are affected by rising energy costs

The share of costs for energy in the home in total expenditure is more than twice as high in poorer households as in those of higher-income households.

In 2020, households with a monthly net income of less than 1,300 euros spent an average of 95 euros on residential energy.

This corresponds to a share of 9.5 percent of total consumer spending, as the Federal Statistical Office announced on Tuesday.

Households in the highest income class, i.e. with at least 5,000 euros per month, according to the authorities, spent significantly more on energy for housing, with an average of 206 euros.

However, at 4.7 percent, the share of their private consumer spending was not even half as high as that of households with low wages.

Heating subsidy for 700,000 households

The expenses for residential energy include the costs for heating, electricity and hot water - regardless of the energy source.

Across all income groups, households spent an average of 152 euros per month or 6.1 percent of their consumer spending on electricity, heating and hot water.

In 2019 it was 5.8 percent or 150 euros.

Consumer prices for household energy have risen significantly for months, in some cases.

The cost of heating oil, for example, has more than doubled within a year.

The prices for natural gas (plus 9.6 percent) and electricity (plus 3.1 percent) also rose sharply in November.

"In addition to the very low energy prices in November 2020, the CO2 tax introduced at the beginning of 2021 had the effect of increasing prices," explained the statisticians.

To compensate for the drastically increased energy prices, over 700,000 households are to receive a one-off heating cost subsidy of at least 135 euros according to plans by the federal government.

For a two-person household, there should be 175 euros, according to a Reuters bill by Federal Building Minister Klara Geywitz (SPD).

A surcharge of 35 euros is provided for each additional person in the household.

The SPD, Greens and FDP had promised the grant in the coalition agreement.

"That is a noticeable help that reaches the households promptly," said the building policy spokesman for the SPD parliamentary group, Bernhard Daldrup.

The project should come into force in the first half of the year.