State plans to partially cover heating expenses for everyone in Latvia

In the new heating season, the government plans to partially cover the increase in heating for all households, as agreed at the coalition meeting on June 20.

It is planned to allocate EUR 342 million to various aid measures, according to the statements of the representatives of the parties following the meeting.

Arvils Ašeradens (New Unity) said that support measures to compensate for inflation should be divided into two groups. The first provides additional support for lower-income residents, including a more rapid pension indexation, and an increase in housing benefits.  The increase in heating is intended to be partially compensated for all Latvian residents, i.e. this aid will not be targeted at a specific population group.

The largest amount of aid – EUR 150 million – is intended to compensate for the increase in central heating costs, whereas EUR 35 million is intended to partially offset the increase in gas heating costs. Support for partial reimbursement of the increase in heating is also planned for households that heat their homes with wood, pellets, chips, or heat pumps.

The Minister for Welfare Gatis Eglītis said that the government's planned support for households is essential, but it will not be possible to compensate households for all the increases in heating. “People have to count on an increase in bills,” Eglītis said.

The government's representatives indicated that the planned €342 million for the partial compensation of inflation was intended to be taken from the contingency funds, but they could not say how much it would grow the Latvian government's budget deficit. More of this will be known on Tuesday, June 21, when the government is scheduled to see the Welfare Ministry's information report on aid measures.

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