From social bonuses to electric car subsidies: what's included in the social safety net?

MadridAnother defeat for the Spanish government in Congress. The lower house approved a 2.7% increase in pensions this year (only Vox voted against it), but rejected, for the second time, the social safety net decree and the decree promoted by the Minister of Social Rights, Pablo Bustinduy, which would have allowed the Spanish government to limit the prices of goods. Both measures were defeated by the votes of the PP, Vox, and Junts. "Be clear that people will take note [of your decision] and they have long memories," said Bustinduy.

Pending the Spanish government's next move, these are the measures that have so far been left behind.

Price Controls

The mechanism to "limit prices of services or products" in an emergency situation that exceptionally disrupts supply and demand has been overturned. The Spanish government approved the measure a few weeks ago, following the devastating storms in the Valencian Community and the train accident in Adamuz, as well as the disruptions across the entire rail network.

The reform included a provision to incorporate a maximum price ceiling in emergency situations on an extraordinary basis. A situation was considered an emergency when declared by Civil Protection, although it could also be determined by the Council of Ministers.

Housing

Extension until December 31, 2026, of the ban on evictions of certain vulnerable families in cases of non-payment of rent, contract termination, or, in some instances, employment. This affects families who can demonstrate vulnerability and lack alternative housing. In some cases (small landlords), compensation for the landlord is included. Exclusion of the automatic suspension of evictions for landlords who rent out their properties. Social services must intervene to find alternative housing. Tax breaks through deductions in Personal Income Tax (IRPF) for the rehabilitation of properties that improve energy efficiency. Tax incentives ranged from 20% to 60% depending on the improvements. In Catalonia, 34,383 homes benefited between 2021 and 2024. In some cases the measure was extended entirely into 2026, but some deductions were extended into 2027.

Electricity bill

Extension throughout 2026 of the electricity and heating social bonus discounts for vulnerable families.

Guarantee of the supply of basic services (water, electricity, and gas) to vulnerable consumers, whose supply is prohibited from being cut off.

Relaxation of the requirements to be considered a trusted hydrocarbon operator.

Labor

Extension of the ban on layoffs in cases where the company has received public aid.

Extension of the billing umbrellas that allow the self-employed to opt for the simplified tax regime for Personal Income Tax (IRPF) and VAT, as well as the simplified and special regimes for agriculture, livestock, and fishing.

Tax incentives for the purchase of an electric car and the installation of charging points through deductions in Personal Income Tax (IRPF) that can reach 15% of the total amount.

Natural disasters

Extension of direct aid and reconstruction assistance for individuals and businesses affected by the DANA storm in the Valencian Community. Also, the exemption from personal income tax (IRPF) and corporate tax on public aid granted to those affected by the DANA storm.

Exemption from personal income tax (IRPF) on compensation received for personal injuries resulting from forest fires. A measure designed primarily for those who suffered the devastating fires of summer 2025 that ravaged the country.

Business and financing

Extension of the criterion allowing losses suffered by companies in 2020 and 2021, the worst years of the Covid-19 pandemic, to continue to be excluded from the calculation of potential dissolutions.

Update on advance payments for autonomous communities and municipalities.