Shopping is becoming less and less fun for many due to rising prices.Image: SVEN SIMON / Frank Hoermann/SVEN SIMON
politics
Inflation is causing problems for many people in Germany. From a financial point of view, 2022 was a challenge for many Germans. That shouldn’t change in the new year either. On the contrary: there is much to suggest that after deducting the inflation rate, most people will have to tighten their belts even more than in 2022.
No wonder: The price increases affect almost all areas of life, across the board. Even the relief is only like a drop in the bucket.
Because of inflation, Germans have to dig deeper into their pockets for most products.Image: dpa / Michael Reichel
Inflation rate rises, wages lag behind
One reason for this is that wage growth cannot keep up with the inflation rate. According to the Council of Economic Experts, it will also be “significantly below the inflation rate” in the coming year. According to economics expert Torsten Schmidt, things will only pick up again in 2024.
Nevertheless: There are also positive prospects for the new year. For example, there is a product group that is resisting the inflation trend and should make younger people in particular happy. Watson provides an overview of everything that will be cheaper in the new year.
Families with children get more money
Families with children now receive more money. From January 1st there will be a standard fee of 250 euros per month and child. That means a plus of 31 euros for the first and second child and 25 euros more per month for the third child.
In the future, child benefit in Germany is to be replaced by basic child security, which is to bundle various family benefits. Federal Family Minister Lisa Paus (Greens) is aiming for a corresponding draft law for autumn 2023. The aim of the reform is to make it easier for families to benefit from benefits that in many cases they have not even applied for in the past due to ignorance or bureaucratic hurdles.
Citizens’ income relieves numerous Germans
18 years after the start of Hartz IV, at the turn of the year the basic income replaced the previous rules for the unemployed in Germany. In November, after a long struggle, the Bundestag and Bundesrat passed the law, which is considered the most important social reform of the traffic light coalition.
Social reform brings people in financial need more money
The rates increase by around 50 euros. The expected price development should be included in the calculation of the basic security sooner. For single and single parents entitled to benefits, there are 502 euros per month from January 1st, for two adult partners in a so-called community of needs 451 euros each. For young people between the ages of 15 and 18, 420 euros flow. Children from the age of 7 to the age of 14 receive 348 euros. For children up to the age of 6, 318 euros are paid.
The suitability of the apartment is not checked during a waiting period of twelve months. Until then, the actual costs of the apartment will be covered in full. Assets of up to EUR 40,000 for the first person in the benefit community are also protected for the first twelve months. For each additional person, this allowance increases by 15,000 euros.
Electronic items such as smartphones are cheaper
The price monitor of the Federal Statistical Office makes it clear: the prices for certain electronic products have fallen. According to this, the average price for televisions fell by 36 percent in November 2022 compared to 2015.
Smartphones are currently cheaper than they were in 2015.Image: LightRocket/getty images / Stefano Guidi
The Germans could also look forward to lower prices for smartphones without a contract: here the prices are 23.6 percent lower than the annual average for 2015. However, it is unclear how long consumers will benefit from this. Since around April 2021, prices have been rising slightly month after month.
Students receive an energy allowance
Students and technical school students receive a one-off fee of 200 euros to compensate for the increased energy prices and living costs. The law also provides for payment to vocational students in courses with the aim of obtaining a professional qualification of at least two years.
2.95 million students and around 450,000 technical students are entitled to claim. Anyone who is enrolled at a training center in Germany on December 1, 2022 should be able to receive the energy price flat rate. The one-off payment is to be applied for via a digital platform, which the federal and state governments still have to develop.
More people should get more housing benefit
More households will be relieved of the housing benefit from the turn of the year: Up to 1.4 million more households are to be added to the 600,000 housing benefit households so far. The state subsidy is also increased by an average of 190 euros per month. This means that eligible households receive an average of around 370 euros per month.
Less paperwork: Applications should be easier
Households that do not receive social benefits but still have little money can apply for housing benefit. This applies to both tenants and owners of apartments and houses who use their own home. In the future, people who earn the minimum wage or have a pension of a comparable amount should also be able to benefit from housing benefit.
Simplified application procedures should ensure that people receive the new housing benefit quickly. The payments could start immediately after the application was submitted in January or February, the Ministry of Construction announced in December.
Electricity and gas price brake should relieve
Many gas and electricity customers can expect relief from March, when the planned price brakes should start. Gas consumers are to be guaranteed a gross price of 12 cents per kilowatt hour for 80 percent of their current consumption. Similarly, 40 cents per kilowatt hour are planned for electricity. The benefits should also apply retrospectively for January and February after the start.
Saxony-Anhalt, Bernburg: The sun rises behind the technical systems of the Katharina natural gas storage facility.Image: dpa / Klaus-Dietmar Gabbert
For 49 euros across Germany
In local public transport, you should be able to travel throughout Germany in the new year for less money per month. The nationwide usable ticket for buses and trains in local transport should come with an introductory price of 49 euros per month. The goal is to build on the popular 9-euro ticket from the summer. It was originally supposed to start in early 2023. Now April 1st is under discussion.
The 49-euro ticket is intended to tie in with the popular 9-euro ticket.Image: dpa / Daniel Bockwoldt
(with material from dpa/AFP)
