This is how financial experts react to the alarming figures: 6.6 percent of the German population were unable to heat properly due to financial problems.

This is how financial experts react to the alarming figures: 6.6 percent of the German population were unable to heat properly due to financial problems.

According to a report by amp.focus.de, 5.5 million Germans were unable to heat their homes adequately in 2022 due to a lack of money. This corresponds to 6.6 percent of the population and is double the previous year (3.3 percent). Single parents, households with at least three children and people living alone were particularly affected.

The information is based on the EU-wide survey on income and living conditions (EU-SILC). However, Germany, with a population share of 6.6 percent, is well below the EU average because around 9.3 percent of the population were unable to keep their homes adequately warm. People in Bulgaria, Cyprus and Greece were most affected, while the proportion was lowest in Finland, Luxembourg and Slovenia.

For the financial sector, this development indicates an increasing financial burden on households. Higher energy prices in connection with the war in Ukraine have contributed to aggravation of the situation. An increased number of households that cannot afford adequate heat signals increased financial constraints and leads to greater financial burdens for affected families. This can also affect the general purchasing power for the consumer market, as households that have to spend more money on heating costs are less able to invest in other areas of consumption.

The financial industry should therefore pay close attention to these developments and consider whether measures can be taken to provide relief to households in financial difficulty. Increased advice on energy efficiency and financial relief options could help reduce the burden on affected households.