Government supports a partial settlement of the increase in energy prices
In order to improve the availability of housing benefit, giving the opportunity to receive this benefit for a larger number of people, a coefficient of 3 (current 1,5; 2; 2.5 instead) will be applied for the period from 1 September 2022 to 30 April 2023. The guaranteed minimum income threshold for the calculation of the amount of the housing benefit will be EUR 327 euro for the first or only person in the household and 228 euros for other persons in the household for all households for the calculation of the amount of the housing benefit.
In Rezekne municipality, a housing allowance may be applied for in the social service of the municipality of Rezekne, the procedures have not changed. “As of October 1, the municipality of Rezekne will also be able to submit a submission to receive aid for the compensation of thermal energy services. The award of the benefit will be organised according to the external regulatory framework and the residents will be informed about the order,” says Silvija Strankale, head of the local government of the municipality of Rezekne.
So from 1 October to in the social service with a submission for granting of the dwelling allowance, the person will show and the social service will calculate the housing allowance according to the invoices received in September.
The draft law also provides for support for seniors, persons with disabilities, survivors from 1 November 2022 to 31 May 2023:
- a benefit of eur 30 per month will be provided if the amount of the pension, remuneration or State social security benefit does not exceed 300 euros per month.
- A benefit of eur 20 per month is provided for if the amount of the pension, remuneration or national social security benefit is between EUR 301 and eur 509 per month,
- a benefit of 10 euros per month – if the amount of the pension, remuneration or State social security benefit is between eur 510 and eur 603 per month.
If the amount of the old-age pension is, for example, eur 300.94, the decimal places will not be taken into account and the person will pay a national allowance of eur 30 per month.
This State benefit will be granted and disbursed to persons living in Latvia who, from 1 November 2022 to 31 May 2023, have an age, disability or survivor's pension granted in the Republic of Latvia, including pensions granted in advance and advances, special state pensions, service pensions for those who have reached the age necessary for the granting of the old-age pension, but for whom the old-age pension has not been granted, the recipients of service pension who have not reached the age necessary for the granting of the old-age pension and who have a determined disability. The benefit will also be due to the beneficiaries of compensation for loss of capacity or compensation for the loss of the survivor and the beneficiaries of the State social security benefit.
The State benefit of EUR 30 will be granted and disbursed to persons living in Latvia who are the allowances granted by Latvia to the family State allowance for the recipient of children with disabilities.
To compensate for the increase in energy prices, support for households using electricity, natural gas, wood briquettes, wood pellets and wood as well as a district heating service is foreseen.
- Wood, purchased from 1 May 2022 to 30 April 2023, fixing the price level from which aid will be granted - eur 40/ber.m3 (approximately 35 euro/MWh). The State will compensate the cost increase of 50% (i.e. if costs exceed 40 euro/ber.m 3) but not more than 15 euro/ber.m3. Maximum amount of aid eligible for aid per household will be EUR 35/ber.m3. The aid period is fixed from 1 May 2022 to 30 April 2023. Applications for aid in the municipality will be submitted from 1 October 2022 to 30 April 2023.
On the other hand, wood purchased by this year 31 August and for which a proof of payment cannot be presented, the State will compensate fixed aid of eur 60 per dwelling. If an application for wood aid with a proof of payment is submitted in addition to the same dwelling, the further aid shall be granted at an amount of aid exceeding eur 60, taking into account the above-mentioned price and volume conditions. Applications for aid in the municipality will be submitted from 1 October to 30 November 2022.
- Wood briquettes and wood pellets the price threshold is set at eur 300 per tonne (approximately eur 65/MWh). Also here, the cost increase will be compensated for AT 50% (i.e. if costs exceed 300 euro/tonne) but not more than 100 euros/tonne. The maximum amount of aid eligible for aid per household will be 10 tonnes. The aid period is fixed from 1 May 2022 to 30 April 2023.
- For households used for heating electricity, the aid will be granted to users with a consumption of more than 500 kWh per month but not more than 2000 kWh based on the principle of self-declaration of the heating system. The State will compensate 50% of electricity prices above eur 0,160/kWh but not more than 100 euro/MWh. For any household, the first 500 kWh consumed will have to be paid in accordance with the electricity price determined by the electricity trader, but the consumption exceeding that threshold will be compensated. The aid period shall be fixed from 1 October 2022 to 30 April 2023, in the municipality of which applications are to be lodged from 1 November 2022 to 31 May 2023.
For households using electricity, wood pellets, wood briquettes or wood, with payment supporting documents it will be necessary to address the local government, which will take the decision to grant compensation. In turn, the State will reimburse the cost of this compensation to the local government.
- For households where the heating is used natural gas, the amount of the compensation is set at EUR 30/MWh (i.e. eur 0,030/kWh) for users whose monthly consumption exceeds 221 kWh/month (21 m3/month). The aid period is fixed from 1 July 2022 to 30 April 2023. The aid will be applied automatically to household invoices.
It is important to emphasise that in the case of natural gas and electricity users who pay for the service on the basis of the equalised payment principle, the regulation requires natural gas and electricity traders to make a recalculation of the adjusted payment, taking into account actual household consumption and making payment adjustments for previous months. A recalculation with the aid in question will be received by natural gas users in September, which will include aid for July and August.
Similarly, in the period from 1 October 2022 to 30 April 2023, aid for the compensation of district heating services is also planned. In this case, the amount of compensation to cover the increase in thermal energy costs is set at 50% of a price exceeding 68 euros/MWh. The aid will be applied automatically to household invoices.
Indexation of pensions and claims in 2022
It should be noted that in 2022, an index of 1,2287 will be applied to pensions, invalidity, survivors' pensions and reimbursements.
The entire amount of pension and remuneration will be indexed if it does not exceed eur 534. On the other hand, pensions and reimbursements of more than eur 534 will be indexed as part of the amount allocated – EUR 534. The increase will depend on both the amount of the pension and the remuneration and the applicable index.
The exception is the politically repressed, people with Group I disability and the members of the Chernobyl nuclear power plant, which will be indexed to the entire amount of the pension.
For people with an insurance period of up to 29 years, an index of 1,2287 will be applied in the review of the old-age pension; if the period of insurance is between 30 and 39 years, an index of 1,2314 will be applied; if the insurance period is between 40 and 44 years, the index will be 1,2341. On the other hand, if the insurance period is 45 and more years, an index of 1,2369 will be applied.
For example, if the amount of the old-age pension is eur 370, then seniors with an insurance age of up to 29 years from August of this year will be EUR 454.62 (by 84.62 euros higher) if the period of insurance is between 30 and 39 years – the amount of the pension will be 455.62 euro (by 85.62 euros higher) if the insurance period is between 40 and 44 years – the amount of the pension will be 456.62 euro (by 86.62 euros higher). On the other hand, if the insurance period is 45 years and more, the pension will increase to eur 457,65 (eur 87.65).
In the case of questions: Silvia Strankale, tel.m., head of the municipality of Rēzekne municipality. 64607194; 20223392, e-mail: silvija.strankale@rezeknesnovads.lv
After the welfare of the Ministry of Welfare and Rezekne, the information of the social service
