Cuts for German households

With the energy crisis just around the corner, winter does not come without severe cuts. But how can one save money when inflation is running rampant? For low-wage earners, the “knife” in spending begins with transportation in the broadest sense. In a recent survey by the Hans Beckler Foundation, which is close to German trade unions, 60% of households with a net income of less than 2,000 euros per month say they will limit their private car travel. In a related report, the first program of German television mentions the example of families who now have their cars in rental Apps, expecting additional income of up to 90 euros per month.

But even on holidays it seems that many Germans put on a “cutter”. According to a survey by the consulting company PwC, one in two Germans declares that they will limit the total duration of their next vacation, while an impressive percentage of 73% choose a destination, for which they do not need a plane ticket. With restaurant prices causing a headache, vacations in rooms or cottages that allow residents to cook their own food are becoming fashionable. About 60% of the respondents state that they will prefer this economic solution.

Cuts at the supermarket too

Nine out of ten Germans expect serious increases in food as well. Many are adjusting their consumer behavior from now on. According to a food industry survey cited by German television (ARD), 57% of consumers are looking for better prices, while one in three now go to the supermarket with a written shopping list, so as not to be drawn into spontaneous or unnecessary markets. Just 44% of respondents now state that taste is the main criterion for their purchases, while a percentage of 67% cite the price of the product as the main criterion.

According to the Hans Beckler Foundation survey, 39% of Germans, regardless of income, want to limit their food purchases. One in ten even say they will buy “significantly less” food than in the past. The percentage increases significantly among low-wage earners. Almost one in two will cut back on clothing and footwear purchases. “In the economic relief that is planned it is important that there is more provision for the lowest incomes,” says Sebastian Dullien, scientific director of the Macroeconomics Institute at the Hans Beckler Foundation.

The energy bill is rising

Restrictions on heating and hot water consumption are planned by 60% of respondents. Many of them are now getting a “taste” for the difficult winter. In their letter, the natural gas providers announce significant increases from October. At the end of 2021, a kilowatt-hour cost an average of six minutes, while today it is around 13 minutes, and may increase even more in certain areas of Germany. For example in Berlin the company Vattenfall charges new customers 25 cents per kilowatt hour.

In addition, from October 1, the new fixed fee comes into force, with which large companies will pass on to the consumer the increased cost of natural gas imports. According to initial estimates, a family of four living in a house of 100 sq.m. and until today he consumed 18,000 kilowatt hours a year, paying 1,080 euros for natural gas, next year he will be asked to pay 3,240 euros for the same amount (including the special fee). In a first attempt to reduce costs, consumers can significantly lower the temperature. As Steffen Herertz states in the General-Anzeiger newspaper of Bonn, “a decrease in temperature by one degree can result in a 6% reduction in consumption”.

Yannis Papadimitriou (DW, Tagesschau.de)

Source: Deutsche Welle