Inflation relief for cash-strapped households

In his ólavsøka speech, the Prime Minister mentioned that struggling households would soon be offered one-off payments of up to DKK 7,000.

These payments, subsequently labelled ‘oil subsidies’, were intended to help families cope with rising living costs, specifically oil costs.

“Financial storms are forecasted, and the first signs of an energy and food crisis are on the horizon. We are feeling the effects of rising inflation. Fuel and food prices, in particular, have risen sharply, and interest rates are also going up,” Prime Minister Bárður á Steig Nielsen said in his speech.

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“The government will be presenting a proposal for inflation relief of up to DKK 7,000 for households that struggle to make ends meet financially.”

Not much has been said about this oil subsidy since then, but the proposal is ready now, and the Minister of Social Affairs, Sólvit Nolsø, says he will submit it to Parliament next week.

The subsidies will be handed out to households based on household income and other factors and will be available until the end of this year.

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“It’s very clear that this is a necessary measure as many households are struggling these days,” said Nolsø.

“Further inflation relief measures are included in the negotiations for the upcoming 2023 state budget proposal, but this oil subsidy is the only concrete inflation relief plan on the table right now.”

The minister did not reveal any further details, adding that several ministries are involved in discussions about how households can navigate the inflation-fuelled price hikes.

Read the Faroese versions of this article here and here.

More Faroese News in English.