Germany's energy crisis deepens inequality as low-income families struggle with soaring bills
Rising energy costs are hitting low-income households in Germany the hardest, according to the country's latest Poverty and Wealth Report. Families earning less than €1,300 a month now spend 10 percent of their budget on housing energy, while wealthier households pay far less. Charity organisation Caritas is now urging reforms to ease the burden and speed up the shift to sustainable heating.
The disparity in energy spending is stark. Data shows that households with monthly incomes above €5,000 devote under 5 percent of their expenses to heating and electricity. Meanwhile, those on the lowest incomes face a far heavier load, with one-tenth of their total outgoings swallowed by energy bills.
Caritas has proposed several measures to address the issue. The charity wants legal rules requiring landlords to install climate-friendly heating in rental properties. It also backs wider access to state support, such as housing allowances, and better funding for energy-saving advice services like the *Energy-Saving Check*. The push for change comes as Germany rolls out its updated Heating Act (*GEG*). From 2029, new heating systems must run on at least 65 percent renewable energy once local heat plans are in place. New builds in designated areas will need to meet this standard even sooner, by June 2026. Caritas President Eva Welskop-Deffaa argues that modern, renewable-based systems would cut costs in the long run while protecting the climate. The charity also highlights broader benefits of a *Wärmewende*—Germany's planned heating transition. Moving away from fossil fuels would reduce reliance on volatile global oil markets and lower emissions. However, no current figures exist for how many rental properties already use climate-friendly heating.
Caritas is calling for faster action to support struggling households and enforce greener heating rules. The proposed reforms aim to cut energy bills for low-income families while accelerating Germany's shift to renewable heat. Without changes, the gap in energy costs between rich and poor is likely to widen further.
