More money than expected: That's how relieved you are

Germany stands together and the federal government issues one again.

More money than expected: That's how relieved you are

Germany stands together and the federal government issues one again. With all the usual quibbles: the intended measures in the relief packages will help cushion rising energy costs. You can read here how much help is given to you.

Difficult times - for known reasons. But the federal government is realistic: the drastic increase in the cost of living is becoming a major burden for many citizens in Germany. But she is also optimistic. According to the traffic light coalition, the situation on the energy markets will ease in the medium and long term when more alternatives to Russian gas become available. That's what she's working on.

Until then, the federal government will be generous and helpful. Motto: Nobody is left alone. As a result, she has agreed on further measures to relieve the burden on citizens and companies, in the form of what is now the third relief package. But like the other two, this only creates a good mood to a limited extent. Accusation: watering can principle, unfair et cetera. Just the usual.

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) found out for "Zeit".

In the study, a distinction was made between low, normal, better, high and top income households. These groups were then further divided into singles, single parents and families.

The DIW took into account all measures from all three relief packages that can be directly quantified: Reduction of the EEG levy, energy flat rate, child bonus, reduction of the cold progression, suspension of the price for CO₂, child benefit and child allowance, tax deduction for pension contributions, reduction in VAT for gas . Measures for 2022 and 2023 are taken into account. The energy costs were estimated on an annual basis.

However, the effects of the planned electricity price brake and the gas cap were not taken into account. Because their effects are not yet foreseeable or to be defined more precisely.

And this is how the measures work:

low-income earners

Here, an annual net income of 35,732 euros for families, 22,120 euros for single parents and 17,016 euros for singles via household net equivalent income modified OECD scale is assumed.

Families: If the costs for gas 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, a threefold increase to 2670 euros would leave a burden of 809 euros. When the prices quadruple, the cost increased to 3453 euros. The family would then have to pay 1,513 euros themselves.

Single parents: If doubled: from 1066 to 113 euros, if tripled from 1650 to 639 euros and if quadrupled from 2235 to 1165 euros.

Singles: If doubled: from 869 to 270 euros, if tripled from 1388 to 737 euros and if quadrupled from 1906 to 1203 euros.

average earner

Here, an annual net income of 55,128 euros for families, 34,127 euros for single parents and 26,251 euros for singles via household net equivalent income modified OECD scale is assumed.

Families: If doubled: from 2322 to 368 euros, if tripled from 3386 to 1325 euros and if quadrupled from 4450 to 2282 euros.

Single parents: If doubled: from 1202 to 394 euros, if tripled from 1743 to 881 euros and if quadrupled from 2284 to 1367 euros.

Singles: If doubled: from 1140 to 354 euros, if tripled from 1628 to 883 euros and if quadrupled from 2216 to 1411 euros.

higher earners

Here, an annual net income of 74,942 euros for families, 46,393 euros for single parents and 35,688 euros for singles via household net equivalent income modified OECD scale is assumed.

Families: If doubled: from 2831 to 897 euros, if tripled from 3991 to 1939 euros and if quadrupled from 5150 to 2982 euros.

Single parents: If doubled: from 1488 to 523 euros, if tripled from 2039 to 1019 euros and if quadrupled from 2591 to 1514 euros.

Singles: If doubled: from 1181 to 349 euros, if tripled from 1756 to 867 euros and if quadrupled from 2332 to 1385 euros.

high earners

Here, an annual net income of 100,234 euros for families, 62,050 euros for single parents and 47,734 euros for singles via household net equivalent income modified OECD scale is assumed.

Families: If doubled: from 2440 to minus 24 euros, if tripled from 3440 to 875 euros and if quadrupled from 4439 to 1774 euros.

Single parents: If doubled: From 1537 to 226 euros, if tripled from 2154 to 781 euros and if quadrupled from 2772 to 1336 euros.

Singles: If doubled: from 1667 to 513 euros, if tripled from 2537 to 1295 euros and if quadrupled from 3407 to 2078 euros.

top earners

Here, an annual net income of 238,571 euros for families, 147,685 euros for single parents and 113,599 euros for singles via household net equivalent income modified OECD scale is assumed.

Families: If doubled: from 2979 to 86 euros, if tripled from 4278 to 1269 euros and if quadrupled from 5577 to 2453 euros.

Single parents: If doubled: From 1870 to 305 euros, if tripled from 2673 to 1037 euros and if quadrupled from 3476 to 1768 euros.

Singles: 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 having an effect. But not only for low and middle incomes. The state offsets a significant portion of additional energy costs, even among the wealthy. Even (very) high-income households are given a helping hand in relieving them of increased energy costs. This is mainly due to the tax-cutting measures in the relief packages. Because households with high incomes usually pay more taxes, but are also more relieved in the event of tax cuts.