Finance ministry details 10% grocery bill subsidy for low-income households

As of February 2023, support amounting to 10% of food shopping bills will be provided to Greek households on conditions, the Finance ministry said, outlining the measures announced by Prime Minister Kyriakos Mitsotakis on Saturday.

In the plenary debate in Parliament prior to voting on the 2023 state budget, Mitsotakis revealed the new subsidy and said that the process of disbursement would resemble that of the fuel pass, while the cost – totaling 650 million euros – would be received in taxes on the surplus profits of two Greek refineries.

The Finance ministry explained that the subsidy would relate to a maximum food bill of 220 euros per month for a single-member household, with the bill margin increased by 100 euros for every additional member (maximum 1,000 euros in food bills per family per month). Included in the measure is shopping in supermarkets and other food retailers such as bakeries, minimarkets, grocers, butchers, fishmongers, dairy stores, and so on.

For example, in a single-member household, 220 euros of the monthly grocery bill would be subsidized with 22 euros (10%). A couple would receive a subsidy of 32 euros on 320 euros of its grocery bill, while a couple with two children would receive 52 euros on 520 of its monthly grocery bill.

In other words, a couple with two children would save 312 euros in six months, and a couple would save 192 euros in six months. The subsidies will be credited through a debit card valid only in supermarkets and food retailers, unless a consumer chooses to have the subsidy deposited in a bank account, in which case it will be credited every three months in addition to being reduced to 80% of the subsidy per case.

Beneficiaries include households with an annual family income up to 16,000 euros for a single-member household and 24,000 euros for couples (married or in official partnership), increased by 5,000 euros per family for every child or hosted member of the household. In addition, families may not have assets that exceed 250,000 euros for a single-member household or 400,000 euros for married couples, official partners, and single-parent families.

The government said nearly 3.2 million households (of a total 4.1 million) are eligible, involving nearly 8.4 million members.

Details are expected this coming week by related ministers. [AMNA]