Germany's energy crisis deepens as low-income families struggle with soaring heating costs
Rising energy prices are hitting low-income households hard, according to Germany's latest Poverty and Wealth Report. Families earning under €1,300 a month now spend 10% of their budget on housing energy costs. In response, Caritas is urging stronger measures to support vulnerable renters and speed up the shift to sustainable heating.
The gap in energy spending is stark. Wealthier households with monthly incomes above €5,000 allocate less than 5% of their expenses to heating and electricity. Meanwhile, those on the lowest incomes face far heavier burdens, with a tenth of their total outgoings swallowed by energy bills.
Caritas has called for legal changes to ensure rental properties install climate-friendly heating systems. President Eva Welskop-Deffaa argues that such a move would give tenants access to stable, long-term energy prices while cutting emissions. The charity also wants better funding for advisory services, like the *Energy-Saving Check*, to help households reduce consumption. Current data on how many rental buildings already use green heating is patchy. While the federal *Building Energy Act* (GEG) sets targets—such as 65% renewable energy in new heating systems from 2026—enforcement depends on local heat plans. These require municipalities to meet quotas like 15% renewables by 2029, but no state has yet introduced stricter retrofit rules beyond the national framework. Beyond heating, Caritas is pushing for reforms to housing allowances. The aim is to simplify access to state aid, ensuring more low-income families can afford their energy bills during the transition to sustainable systems.
The push for climate-friendly heating could ease financial pressure on renters while reducing reliance on volatile oil markets. Caritas insists that without stronger policies, low-income households will continue to bear the brunt of rising energy costs. The charity's proposals now await government action to turn targets into concrete support.