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On Thursday 31 March 2022, the Luxembourg Government, the UEL business lobby and the LCGB and CGFP trade unions have agreed on three measures to alleviate the pressure of rising prices on the purchasing power of the most exposed households.

1. Anticipatory introduction and adaptation of the rental subsidy

The rent subsidy will be adapted on 1 August 2022 so as to make all tenants eligible up to the income corresponding to fifth decile, i.e. the median standard of living. In addition, the monthly amount of the rent subsidy will increase for all beneficiaries by an average of 50% compared to the situation currently in force. Thus, large families will be able to receive up to €400 in monthly assistance for rent charges.

The adaptation of the aid will be made automatically for all households currently benefiting from the rent subsidy and will be applicable for all future requests.

2. Introduction of a rent freeze until 31 December 2022

In order to prevent the increase in the rent subsidy from being consumed – even partially – by rent increases, a temporary freeze for all rent increases will be introduced until the end of 2022.

3. Revision of the PRIMe house aid scheme and introduction of a “100% social Topup”

The PRIMe House aid scheme, which will come into force in the coming days, with retroactive effect from 1 January 2022, will be supplemented by a “Social Topup”.

Thus, the premiums for heating systems based on renewable energies will no longer have to be pre-financed by the beneficiaries. The state will pay the amount of the state subsidy directly to the company that carried out the work.

In addition, beneficiaries of PRIMe House aid will be able to apply to the Guichet housing assistance for a “100% social Topup” which may result in a doubling of the PRIMe House aid, depending on the income of the beneficiary's household. This additional aid aims to enable the targeted households to avoid the risk of energy poverty.

This additional aid will be introduced by the ongoing reform of individual aid facilitating access to housing and should come into force at the beginning of 2023. However, it will apply retroactively to all "PRIMe House" applications for which the he final agreement was given by the Ministry of the Environment, Climate and Sustainable Development on 1 January 2022.

In order to respond in a targeted and specific way to the real needs of households, tenants in the private market and families with more modest incomes are further supported by these three measures.