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ENERGY

Denmark to offer heating subsidies to low income households

Around 500,000 households in various parts of Denmark can apply for assistance paying sky-high heating bills this winter.

Published: 15 November 2021 16:13 CET
A file photo of a Danish energy metre. The government is to release funds for low income households to apply for subsidies to help pay rising heating bills.
A file photo of a Danish energy metre. The government is to release funds for low income households to apply for subsidies to help pay rising heating bills. Photo: Henning Bagger/Ritzau Scanpix

Homes in areas heated by gas boilers or district heating with high gas consumption could see increases in monthly bills of up to 1,000 kroner, the Ministry of Employment said in a press statement.

The government has announced funds of 100 million kroner to be earmarked to help low-income households in affected areas to pay the high bills. Municipalities will be able to apply for the funding. Local authorities would then use the money to directly subsidise residents, the ministry said. Individual residents can already apply for the subsidies through their municipalities, minister for climate, energy and critical supplies Dan Jørgensen told broadcaster DR.

The announcement comes with high oil prices pushing up energy costs for consumers globally.

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Under the proposed government initiative, the money could be used to offer subsidies to people receiving the basic state pension (folkepension) and welfare benefits (kontanthjælp) who are impacted by the price rises.

The government has also agreed with industry representative organisation Dansk Fjernvarme to spread escalating bills incrementally, according to the ministry statement. This will mean price increases will not be added to a single bill but be spread over the year. Bills are normally highest during the winter months.

“We are in an extraordinary situation whereby the price of gas for heating has increased so much that large bills can result in some areas. Not everyone can afford such an unseen expense, which is why the government has prepared a heating package that can help ease the blow from some of the price increases,” Jørgensen said in the government statement.

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MONEY

REVEALED: Your money-saving tips for life in Denmark

Denmark is famously one of Europe's most expensive countries, so we asked our readers in the Nordic nation for their top Danish savings tips.

Published: 26 January 2024 17:03 CET
REVEALED: Your money-saving tips for life in Denmark

Denmark was named as the most expensive European Union country for basic goods and services in 2022, along with Ireland. Data from the EU’s statistics agency Eurostat showed that price levels in Denmark were 40 per cent higher than the EU average.

For consumer goods and services, Denmark had the highest prices of all EU member countries, coming in at 49 percent above the EU average.
 

As many as 90 percent of our readers surveyed said that Denmark is an expensive country to live in but had many money-saving tips to share.

 
“Use Earlybird for booking restaurants…the Tilbudsavis app to find discounts on groceries, buy coffee capsules online, never pay for electricity Aconto – settle only for actual consumption, get a prepaid phone plan from Lycamobile or Lebara as it’s best value for money,” 31-year old Ivan in Copenhagen suggested.
 

Cooking at home and avoiding eating out was a popular suggestion from many readers. They also recommended researching online before buying expensive products and to check discounts in supermarkets.

 
37-year old Magda based in Copenhagen said, “Use the minetilbud app so you can buy øko [organic, ed.] products for lower prices, buy discounted products in a larger amount and store them, buy good quality bread or øko meat/fish with a short expiration date and freeze it…grow your own vegetables, use the Too Good To Go app.”
 
Reader Kevin added, “I buy bulk goods when they are on sale and then freeze them for later.”
 
Money-saving tips also included using the commuter discount card Pendlerkort for public transport and car-sharing or renting a car instead of buying.
 
One reader said, “For public transportation, check company card options with your employer. For insurances, check your employer schemes and do your research online with comparison tools. For car insurance, consider joining a motorist association as they offer much cheaper car insurance plus other benefits. There is little sense in buying new or large cars as they are excessively expensive.”
 
 
For those with children, it was recommended to buy annual membership cards to zoos, museums and amusement parks if you will visit at least twice a year.
 
“Buy second hand stuff especially for babies and small children and check out libraries or cultural centres for events, especially for kids as they are often free,” one reader said.
 

Petra, from the Czech Republic and living in Aarhus said, “use second hand apps and shops, circular economy apps like Reshopper, or apps selling close to sell-by-date foods like Too Good To Go.”

 
There were several suggestions from our readers to travel out of Denmark to buy certain goods and services. 
 
“Travel to Malmö and do a huge shop there and buy goods in Germany or Sweden, while on trips,” Scott, aged 67 and living in Copenhagen advised.
 
32-year old Hanna, based in Copenhagen said she got all her beauty procedures done abroad.
 
“Find psychologists, teachers, and even personal trainers abroad. Buy vitamins and basic medications in German online pharmacies,” she added.
 
 
Some 92 percent (34 out of 37) of our readers in the survey said the expense of Denmark had changed the way they live, compared to other countries. Many noted how they don’t go out to eat and drink as much, or to the cinema or theatre. Others said a lot of their money went on bills and rent, leaving less to spend on leisure activities.
 
A much lower proportion, 38 percent said they would consider moving away from Denmark because of how expensive it is. 
 
Items people found particularly expensive in Denmark included rent, property, food, especially healthy food and sweets, alcohol, coffee shops, clothing, the price of spectacles, eating out, cinema and theatre, family trips out for example the zoo, museums, public transport and taxis, petrol, cars, dry cleaning, hairdressers, spa treatments, handyman services, and electricians.
 
The items our readers found cheaper in Denmark compared to other countries were education, healthcare, internet and mobiles, car insurance, long-distance bus journeys, bikes, some food (such as rye bread), clothing, houses outside of city centres and even real estate in Copenhagen relative to other European capitals.
 
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