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In a bid to ease energy expenses for vulnerable groups and promote sustainable housing solutions, the Cabinet approved a set of medium-term measures during its meeting on Tuesday, chaired by President Nicos Christodoulides. The measures are designed to support households and young families, with adjustments planned based on budgetary conditions.
Key initiatives include:
1. Electricity Bill Subsidy Expansion: The existing subsidy for electricity bills will now cover low-income pensioners and single-parent families. This extension will benefit approximately 22,200 low-pensioner households and 10,700 single-parent households eligible for the allowance. The subsidy is set to last until December 2025, with an estimated cost of €25 million.
2. Enhanced “Photovoltaic for All” Scheme: An additional €15 million will be allocated to expand the "Photovoltaic for All" program, which allows families, particularly large ones in smaller homes, to access solar power systems without initial payments. This initiative aims to assist about 3,000 families.
3. “Save-Energy Upgrade” Scheme: The Cabinet is also approving €30 million for the "Save-Energy Upgrade" program, aimed at improving energy efficiency in existing homes. This program will be available exclusively to individuals.
4. Zero VAT on Essential Items: The government ratified a previous announcement to implement a zero VAT rate on essential items such as children's diapers, baby formula, adult diapers, feminine hygiene products, and fresh fruits and vegetables. This measure, which takes effect on November 4, 2024, will be in place until the end of 2025, costing an estimated €5.1 million.
Housing Initiatives:
- The Ministry of Finance will begin accepting applications for a 2% interest rate subsidy on mortgage loans for first homes purchased or constructed between January 1, 2022, and December 31, 2023. This program targets families with an annual income of up to €50,000 and has a total budget of around €33 million.
- Starting November 15, 2024, the Ministry of Interior will accept applications for the "Renovate - Rent" plan, aimed at revamping vacant homes and offering them at affordable rents (30% below market rate). This initiative involves 1,000 housing units and has a total estimated cost of €25 million, including tax relief for landlords.
- Additionally, a Housing Subsidy Scheme will provide one-time grants between €20,000 and €50,000 for young couples and individuals up to 41 years old, with about 400 expected beneficiaries and a total cost of €15 million.
More details will be provided by the Ministries of Finance, Interior, and Energy as these initiatives roll out.
