Cyprus Ranks Second in EU for Households Unable to Afford Adequate Heating

Cyprus Ranks Second in EU for Households Unable to Afford Adequate Heating

Rising Cost of Living and Housing Debt Pose Severe Social Challenges

Cyprus has the second-highest percentage of people unable to keep their homes adequately heated, according to a report by the European Committee of Social Rights of the Council of Europe. The report, titled "Social Rights and the Cost of Living Crisis," cites 2022 Eurostat data and was published on March 19. It examines the impact of rising living costs on social rights across Europe.

Cyprus is also among the countries with the highest percentage of households facing overdue payments, with the report highlighting the country's housing subsidy policies and social housing initiatives.

Cost of Living Crisis and Rising Housing Debt

The report provides a detailed overview of the challenges governments face in ensuring the rights protected under the European Social Charter. It also presents recommendations for governments to safeguard these rights amid a cost of living crisis, where essential goods are becoming increasingly unaffordable relative to household incomes.

According to Eurostat data, more than 41 million people in the EU (9.3% of the population) were unable to afford adequate home heating in 2022, up from 6.9% in 2021.

The highest rates were recorded in Bulgaria (22.5%), Cyprus (19.2%), Greece (18.7%), Lithuania (17.5%), Portugal (17.5%), Spain (17.1%), and Romania (15.2%).

In contrast, the lowest rates were observed in Finland (1.4%), Luxembourg (2.1%), Slovenia (2.6%), Austria (2.7%), Czechia (2.9%), Sweden (3.3%), and Estonia (3.4%).

The report also highlights the issue of housing debt, noting that overdue payments on rent or utility bills indicate that housing costs were already unaffordable before the crisis. The percentage of people living in households with overdue mortgage, rent, or utility payments in the EU declined from 12.4% in 2010 to 8.2% in 2019, despite steadily rising housing and rental prices.

However, this percentage began rising again in 2019, reaching 9.3% in 2023. That year, the highest rates of overdue payments were recorded in Greece (47.3%), Bulgaria (18.8%), Romania (14.4%), and Cyprus (14.3%), while the lowest were in the Netherlands (2.6%), Czechia (2.9%), Belgium (4.6%), and Italy (5%).

Policy Recommendations and Social Protection Measures

The report underscores the importance of targeted policies to support vulnerable households. It highlights Austria’s financial aid program, which assists low-income families with housing costs, including rent payments, mortgage repayments, and renovation loans.

The European Committee of Social Rights urges governments to design and implement targeted measures for groups most affected by the crisis. It also calls on states to ensure that social security benefits remain adequate, adjusting them in line with inflation to support struggling households. Additionally, it emphasizes the need to guarantee fair wages and ensure that minimum wages are not lower than 60% of the national net median salary.

Regarding the rising costs of housing, energy, and food, the report recommends that governments:

  • Expand social housing initiatives and strengthen eviction protections

  • Monitor levels of energy poverty and provide targeted assistance to the most affected households

  • Implement long-term policies to ensure stable, affordable, and secure access to sufficient energy.

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