Cabinet prepares targeted compensation for vulnerable households after 2023 | News item

News item | 28-04-2023 | 13:50

‘Decision will follow on Prinsjesdag’

The government wants to be able to provide targeted help to vulnerable households next year, if this is necessary due to high energy prices or inflation. That is why options have been investigated to provide targeted help to vulnerable households in 2024. The possibilities in implementation were explicitly examined.

Partly in response to the purchasing power assessment of the Central Planning Bureau (CPB), the cabinet will decide before Prinsjesdag whether and which measures will be used. For existing purchasing power instruments, such as increasing tax credits and allowances, the decision-making in August will allow sufficient time for them to take effect in 2024. A number of other measures require technical preparation to make this possible.

As a precaution and where necessary, the cabinet is putting this preparation into effect. For example, the increase in the rent allowance. This requires a change in the law. In addition, preparations are being made to build new first brackets in the energy tax for gas and electricity. This ensures that any rate adjustments in these brackets are technically possible as of 1 January 2024. Other options, such as lowering the rates in the old brackets and increasing the tax credit, are also being considered. The government has previously announced that it will make an extra €300 million available for making homes more sustainable in order to structurally reduce energy bills.

Other measures that the cabinet is considering are a form of an energy surcharge and options for targeted support for tenants in homes with a poor energy label. The government will enter into discussions with the Association of Dutch Municipalities, energy suppliers and housing cooperatives to further explore these options. The cabinet will decide on Prinsjesdag whether and which measures will be taken.

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