Spending power fell last year, despite energy bill help

The impact of the energy measures on spending power

Spending power fell by an average of 1.2% last year, as the one-off energy bill supplement offset soaring inflation, national statistics agency CBS said on Thursday.

Without the energy bill help, spending power would have gone down nearly 3%, the CBS said.

However, people living on welfare benefits, people in work but claiming housing benefits, and single parent families actually had more to spend last year, the CBS said.

Childless couples, pensioners and homeowners were most affected by the downturn in spending power.

Poverty minister Carola Schouten told MPs on Wednesday that “most” low income households will get a maximum of €1,300 towards the cost of their energy bills by the end of the year.

The benefit, which is paid out by local councils, targets people with an income of up to 120% of the poverty line.

The government also introduced a energy cost price cap, which expires at the end of this year.

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