Regarding the Rising Heating Bills, Proposes Expanding the Availability of Housing Benefits
Due to projected significant rises in heating bills, a proposal has been put forward in Latvia to expand the availability of housing benefits to a larger segment of the population.
In Latvia, heating bills are expected to increase by 40% to 70% in January, particularly affecting residents in Riga and other areas. Despite Prime Minister Evika Siliņa asserting that there is no energy crisis in the country, the Ministry of Welfare argues that current support mechanisms are insufficient to meet the needs of affected households. In response, the Ministry has proposed a plan to increase the housing benefit coefficient uniformly for all households, effectively expanding eligibility while addressing rising energy costs.
The proposed changes include raising the housing benefit coefficient to three from January until late April, which will allow more households to qualify for this assistance. Currently, there are three coefficients in place (1.3, 1.7, and 2.1) depending on the category of the household, such as families with multiple children or seniors. The Welfare Minister, Reinis Uzulnieks, emphasized that by increasing these coefficients, around 11,000 additional citizens could gain access to housing benefits, bringing the total to approximately 44,000 recipients per month.
Furthermore, the government plans to adjust the proportional funding of the housing benefit, with the state and municipalities sharing the cost equally, moving from a 70%-30% split to a 50%-50% distribution. This shift not only aims to alleviate the financial burden on families facing soaring heating bills but also responds to public calls for increased support during challenging economic conditions, ultimately encouraging more equitable assistance across various demographic groups in Latvia.