The government is introducing new supplementary measures to cushion the impact of rising energy prices and persistent inflation on low- and middle-income earners. Inflation may rise substantially this year, possibly reaching 5.2%. This is due mainly to higher energy prices. Purchasing power is expected to fall by 2.7% on average. The government is therefore raising the one-off energy allowance (energietoeslag) for people on incomes around the level of social assistance benefit to € 800. It is also lowering the rate of value-added tax (VAT) on energy from 21% to 9%, and the excise duty on petrol and diesel will be cut by 21%. Finally, the government is bringing forward spending of € 150 million, originally earmarked for 2026, to help low-income households take energy-saving measures. These measures were announced in a letter to the House of Representatives from Karien van Gennip (Minister of Social Affairs and Employment), Sigrid Kaag (Minister of Finance), Carola Schouten (Minister for Poverty Policy, Participation and Pensions), Micky Adriaansens (Minister of Economic Affairs and Climate Policy), Rob Jetten (Minister for Climate and Energy Policy), and Marnix van Rij (State Secretary for Tax Affairs and the Tax Administration).