Hoogeveen wants to use 1.6 million euros to help residents who are in trouble due to rising energy prices and increasing inflation. For example, there are plans to make the energy surcharge available to a wider group of people. The municipality has received money from the government to implement the plans.
At the moment, everyone who earns up to 120 percent of the minimum income can use the energy allowance. To make it even more accessible, Hoogeveen wants to scale up the 120 percent to 130 percent. The relaxation is part of a larger package of measures. The city council still has to approve all plans.
That may have consequences. There is no limit on the number of applications by residents. The costs can therefore be higher than the available money.
With one million euros, 770 applications can be processed, says the municipality. The number is expected to grow to 1300 due to the expansion. If that happens, the total budget will be exceeded by 90,000 euros. “Given the situation, the Board wants to bear this risk”, can be read in the proposal.
Hoogeveen expects it to become busier as a result of the increase in the percentage. At the moment, the current number of employees within the municipality is not sufficient to process the extra applications for energy allowance. The municipality thinks it will have to hire three extra employees for six months in order to be able to carry out the work.
Hiring extra staff will cost the municipality a little more than a ton. Together with the budget overrun, the total would then be around 1.8 million euros.
Volunteer organizations that help residents of the municipality with finances can also expect a helping hand. Extra subsidy may become available, because volunteers are increasingly confronted with complex issues.
A tailor-made fund will be set up for residents who run into serious financial problems as a result of inflation and energy prices. With this, the municipality wants to find out on a case-by-case basis how a resident can best get help if he or she is in financial difficulties.
The process surrounding the energy surcharge can also be made even more efficient. We are investigating whether lead times can be shortened. This should make it possible to receive the allowance faster.
The plans were developed by the city council. In October, the political groups of the PvdA, ChristenUnie, SP, CDA and GroenLinks submitted a motion calling for measures to combat energy poverty and inflation. The proposal was ultimately supported by the entire council.
The council will soon have to make a decision on the measures. If approved, the package should enter into force this year. An evaluation will follow next year.