63% of Latvian residents admit they are not confident they will be able to cover all bills this autumn and winter season. 52% say they will more or less depend on state or municipal aid, as concluded in the survey by Swedbank Institute of Finances.
Inflation and rapid rise of energy resource prices will cause financial stress for the majority of Latvian residents.
According to results of the survey, 15% of residents are already aware they will likely not be able to cover bills or will be only able to cover them partially (35%). Considering the high uncertainty on the resource market and the future bills, 13% of residents said it is difficult for them to evaluate their potential solvency.
According to results of the survey, residents with low and average income – up to EUR 550 per family member – are the most critical about their ability to pay bills. Households in which income per family member exceeds EUR 1 001 are generally more optimistic and say they will be able to cover bills in full.
Generally every third Latvian resident or 37% are anxious about the upcoming heating season but are nonetheless confident in their ability to cover bills.
More than half of residents expect the state and municipal governments to step in and provide aid (compensation, benefits, etc.).
State aid is most often expected by residents who have more than 5 people in their family. State aid is expected the least often by younger residents aged 18 to 29 years and families that have only one child.
Every fifth resident (21%) is strongly confident about their ability to cover heating bills in autumn and winter. These residents also have no plans to rely on state and municipal aid.
Swedbank Institute of Finances expert Evija Kropa predicts this autumn’s heating costs will be «record high and difficult to afford», adding that for most residents it is difficult to imagine the heating bills they will receive.
«Review of old tariffs and approval of new ones in municipalities goes on at different times, and it is hard to predict the price residents can expect. In parallel to that it is necessary to consider the state support mechanism and how much support residents can expect and for which fuel,» said Kropa.
Generally Latvian residents say they are worried to most about heating and electricity price rise this autumn and winter season.
According to results of the survey, residents who live in the countryside are less worried about heating and housing cost rise, but they are more concerned about transportation and fuel costs (48%).
It should be added that residents with income between EUR 351 and EUR 550 per family member are more concerned about heating (70%), electricity (67%) and food (61%) cost rise.
«Bite whichever finger you want, they all hurt. This is how we can describe the situation Latvian households have to deal with,» said Kropa, adding that residents are equally concerned about heating, electricity, food, transportation and housing maintenance cost rise.
Swedbank Institute of Finances carried out a survey in cooperation with Snapshots in September 2022. 1 051 Latvian residents aged 18 to 74 years were interviewed.