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COST OF LIVING

What students in Germany should know about the €200 energy payout

Germany agreed to offer a €200 lump sum to support students and trainees with higher energy bills. Here's what we know.

Students sit in a lecture at Hanover University.
Many federal states are planning to offer discounted tickets to students that will be valid for public transport across Germany. Photo: picture alliance/dpa | Julian Stratenschulte

What’s happening?

Students in Germany can look forward to a bit of extra cash in the near future: a €200 energy relief payout was agreed upon in Germany’s Bundestag on Wednesday. 

Details of the one-off payment for students were originally set out in the government’s third energy relief package, which included a range of measures to help the population with the rising cost of living.

Students are the third group to receive a lump sum for their energy bills. In September, employees in Germany received €300 on top of their usual wages, while pensioners are also set to get a €300 payout by December 15th.

Who’s eligible for the payment – and when can they get it? 

Around 3.4 million students enrolled in programmes at a university or technical college will be eligible for the payout, provided they have their main residence in Germany. Technical colleges, or Fachhochschulen, are specialised universities where teachers, engineers and business administrators are trained. 

Regardless of whether students are undertaking an academic or vocational programme, the main criterion for eligibility will be that they are enrolled at a higher education institute by December 1st this year. 

According to the Ministry of Education, students will receive the money in early 2023, although an exact date hasn’t been named.

READ ALSO: When will people in Germany get their December gas bill payout?

How do students and trainees get it?

Unlike the energy relief payments for employees and pensioners this year, students won’t receive their €200 payment automatically. 

Instead, the Education Ministry is working to create a digital platform where students can apply for the money. It is still a bit up in the air when students will be able to submit their claims or when the deadline will be. 

Germany is set to spend €680 million for around 2.95 million students and 450,000 pupils. The flat-rate energy allowance is not to be taxed or counted toward any social benefits.

Why are students receiving financial support?

With inflation soaring to record levels in recent months, many students – who often rely on minimum-wage jobs and so-called Bafög grants – have been struggling to make ends meet.

On Wednesday, data released by the Federal Office of Statistics revealed that 38 percent of students in Germany were at risk of falling below the poverty line last year.

People who earn less than 60 percent of the median income in Germany are considered to be at risk of poverty, according to the EU.

Since low-income households are disproportionately affected by the rising cost of living, the government has pledged to step in with additional financial support. 

READ ALSO: EXPLAINED: 10 ways to save money on your groceries in Germany

What are people saying?

Speaking to Handelsblatt earlier in November, the German Student Union hit out at the government for dragging its feet on the payout since deciding on the measure in September. 

Many students need the money now because of exploding prices, secretary general Matthias Anbuhl explained. He said the Bundestag must now pass the one-off payment quickly and the money must be paid out as soon as possible.

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TRAVEL NEWS

Should travellers in Germany buy flights before ticket tax hike in May?

The German government is raising an air travel tax by around 20 percent from May. What does this means for travellers?

Should travellers in Germany buy flights before ticket tax hike in May?

Air travel from Germany is getting more expensive. 

That’s because, from May 1st, the Luftverkehrsabgabe or ‘aviation taxation and subsidies’ air traffic tax is being hiked by around 20 percent. The extra costs will likely be passed onto customers. 

Here are the most important points.

What is the air traffic tax – and why is it being raised?

Since its introduction in 2011, the air traffic tax – also known as the ticket tax or air traffic levy – has generated high revenues for the state. Recent figures show that it brought the government almost €1.2 billion revenue in 2022 and €1.6 billion in 2023.

The move to raise the ticket tax from May is part of German government measures to save money following a ruling on spending by the Federal Constitutional Court last year. The government expects additional annual tax revenue of between €400 and €580 million in the coming years from raising the ticket tax.

READ ALSO: Five budget cuts set to impact people in Germany in 2024

How much is it going up?

All flight departures from a German airport are taxed. The tax currently costs between €13.03 and €56.43 per ticket depending on the destination. These costs are ultimately passed on to passengers.

From May 1st 2024, the tax rates will be between €15.53 and €70.83 per ticket – depending on the destination. 

Here are the additional costs at a glance:

  • Up to 2,500 kilometres – for flights within Germany or to other EU countries, the tax rises to €15.53 per person and journey from €13.03
  • Up to 6,000 kilometres – on medium-haul flights, the ticket tax increases to €39.34 from €33.01
  • More than 6,000 kilometres – for longer flights over 6,000 kilometres, the tax rises to €70.83 from €59.43

Only flight tickets for children under the age of two – provided they have not been allocated their own seat – and flights for official, military or medical purposes are exempt from the tax. 

READ ALSO: Everything that changes in Germany in May 2024

Does this mean I should buy a ticket to fly before May?

It could make sense to book a flight before May 1st if you are planning a trip or holiday abroad. Those who buy a flight before the tax is increased will pay the lower tax – even if the flight is later in the year. 

There is still a question mark over whether the tax can be backdated on the pre-paid flight ticket. However, according to German business outlet Handelsblatt, it would be legally difficult for airlines to demand an increased tax retrospectively.

German travel outlet Reisereporter said this is one reason “why the airlines have not yet informed air travellers of the planned increase in ticket tax”.

What are airlines saying?

They aren’t happy about the hike, mostly because they already feel bogged down by fees and operating costs at German airports. 

The airline association ‘Barig’ has warned that charges at airports and in airspace are already high. According to the Federal Association of the German Air Transport Industry, the departure of an Airbus A320 in Germany costs around €4,000 in government fees, while in Spain, France and Poland it is between €200 and €1,500. These costs are generally passed onto customers,  making buying tickets from Germany more expensive than other places. 

The effects of the increased ticket tax will be most noticeable for low-cost airlines offering budget flights. 

A spokesperson from EasyJet recently told The Local that it was “disappointed with the increase of the passenger tax”, and that the “cost increase will result in higher fares for consumers and damage Germany’s connectivity”.

READ ALSO: ‘Germany lacks a sensible airline policy’: Is budget air travel on the decline?

Meanwhile, the aviation industry is concerned that air traffic in Germany is lagging behind other European countries and is recovering at a slower pace since the pandemic. According to the German Aviation Association BDL, around 136.2 million seats will be offered on flights in Germany from April to September 2024. This is six per cent more than in 2023, but only 87 per cent of the number of seats available before the pandemic (2019).

In the rest of Europe supply is expected to rise above the pre-pandemic level. 

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