According to statistical data, nearly one-fifth of Latvian residents are subjected to the risk of poverty. More then half of them are pensioners. It is expected that due to the rapid rise of energy prices the number of such people in Latvia will only increase.
To prevent a full on social crisis, the consequences of which may be unpredictable, members of Association of Senior Communities in Latvia (LSKA) invite the government to set zero VAT rate for utility payments next heating season, as well as prohibit the application of fines for missed payments for utilities.
LSKA board chairperson Astrīda Babāne stresses that the organisation welcomes the proposal from the Ministry of Welfare to increase the coefficient for calculating the amount of housing benefits, as well as the initiative to compensate the price rise for most forms of heating. However, these support measures may not be enough to save most Latvian residents, especially seniors, from falling into a deep financial crisis.
«If we look at data from the State Social Insurance Agency, we will see that in March the size of average state pensions was EUR 404 with the average pension size EUR 433.44. Disability pensions are even worse – under EUR 237 a month! Meanwhile, with inflation on a rise, life is becoming more and more expensive. Already covering monthly utilities is a heavy burden for a large number of seniors in Latvia,» said Babāne.
«We are scared to imagine what kind of winter awaits these people, especially in the context of the heating season.»
«Which essential needs will they have to refuse – medicines, food? Let’s not even touch the topic of purchasing clothes or attending culture events. Comprehensive support measures are needed. Otherwise many seniors risk ending up homeless because of debts for utilities,» said Babāne.
LSKA Senior Saeima head Barba Girgensone stresses that the criteria set in Nr. 809 Cabinet of Ministers regulations for calculation of housing benefits make this benefit inaccessible for most seniors in Latvia. «Of course, we all know the state budget is not unlimited. However, if people are made unable to pay for their sole home, this could result in a much bigger burden being put on the shoulders of the state and municipalities. Considering the aforementioned and opinions of seniors, LSKA believes it is necessary to set a zero VAT rate for utility payments for this heating season.»
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Girgensone also said that after meeting with representatives of non-government organisations representing seniors, opinions regarding possible additional forms of support recommended to be applies in addition to existing ones. The Ministry of Welfare and Ministry of Environment Protection and Regional Development were informed of this as well.
«LSKA believes seniors who have reached the age of 55 and are paid a pension under EUR 400 for at least four months, starting with September 2022, require a bonus worth EUR 50 to help cover electricity bills. LSKA also believes it is necessary to lift late fees for missed utility payments, as well make it a duty for utility providers to allow customers pay for utilities later then usual,» said Babāne.
«Although LSKA supports the need to increase energy efficiency, it should be said that seniors are unable to co-finance such projects even at 50%, as it is proposed in financial aid programmes. Additionally, seniors are not ready to purchase thermal regulators in their apartments not because they don’t want to, but because they simply cannot afford it,» said the head of the Seniors Saeima.