Bremen hardship fund ends: What does this mean for your energy debts?

Bremen hardship fund ends: What does this mean for your energy debts?

The situation in Bremen is becoming increasingly critical, especially for households struggling with energy debts. The Bremen Senate had the in 2021 Hardship fund set up to save affected people the threat of having their electricity and water cut off. But the support is now on the hit list.

Last Wednesday, the social deputation decided that the hardship fund benefits would be discontinued at the end of this year. The State Audit Office has already sharply criticized the practice, particularly due to the high administrative burden, which exceeds the funding actually used. In the future, affected people should only be supported with benefits in accordance with the Social Security Code, according to the Court of Auditors' recommendation.

Increasing burdens for consumers

The reasons for this increased need for action are complex. Even though the first hardship fund was already discontinued at the end of 2024, the need for the second fund is now clear: Bremen's energy and water suppliers, such as SWB, are expecting an increase in electricity and water cuts as many customers are getting into difficulties due to non-payment. The difficulties have only increased since the start of the Russia-Ukraine conflict, which led to massive price increases in energy supply.

How Hesse reported, energy costs for household customers will almost double in 2022, which poses enormous challenges, especially for low-income households. The Hessian state government then set up its own hardship fund to support this clientele.

Support offers and applications

What exactly is offered as part of the Hessian hardship fund? Even though the regulations differ from state to state, there are some similarities. The fund provides for low-income households in distress due to energy debt to receive one-off equity payments per utility contract. However, this support is tied to an application and can only be provided with the help of advice centers.

Applicants must be prepared to receive advice from debt counseling centers. They also have to submit various documents, such as proof of income and statements. The hardship commission reviews the applications and makes recommendations before the Kassel regional council decides on the approval. However, there is no legal right to the benefits; The approval is granted within the framework of the available budget resources.

In Hesse, the consumer advice center is integrated into the process in many ways by providing advice and processing applications. The body is responsible for organizing communication between applicants and energy suppliers, as in Hesse is described in detail.

What happens next remains to be seen. However, it is clear that the need for support will not go away. Politicians have a duty to find solutions to help people in Bremen and beyond before they fall into the debt trap.