Dáil Éireann Debate, Thursday - 11 December 2025
283. Deputy Ken O'Flynn asked the Minister for Climate, Energy and the Environment the criteria his Department will use to determine the transition from universal energy credits to targeted supports; and if he will outline the evidence base that will inform this decision. [71058/25]
View answerIn recent years, the Government introduced a suite of measures to help households and businesses deal with the cost of energy. This included the provision of electricity credits to households worth €1,500 over four credit schemes with a total cost of €3.3 billion. These universal credits were always envisaged as a temporary, emergency measure because, while necessary at the time, they are not fiscally sustainable nor do they address the cost drivers.
The Programme for Government acknowledges the increased energy cost pressures on households and commits to bringing forward measures to contain energy costs and tackle energy poverty. In this regard, the first report of the National Energy Affordability Taskforce, which was published last month, set out measures for consideration as part of the Budget 2026 process. Many of these options were reflected in Budget decisions. Examples of targeted Budget measures aimed at improving energy affordability include:
• The Fuel Allowance will be increased by €5 per week to €38, supporting over 450,000 households who most require Government assistance to meet their energy costs.
• To directly support working families, the Fuel Allowance is being extended to recipients of the Working Family Payment. This will benefit over 43,000 families.
• From September 2026, those who move from Disability Allowance or Blind Pension to employment will be able to retain the Fuel Allowance for 5 years.
• Record funding of €558 million is allocated for SEAI residential and community energy upgrade schemes (including the Solar PV scheme). This is an increase of €89 million on 2025’s Budget allocation to support delivery of the National Retrofit Plan. This allocation will support the highest every budget for the Warmer Homes Scheme which is targeted at households in energy poverty
In addition, the VAT reduction (from 13.5% to 9%) on electricity and gas bills has been extended to the end of 2030, saving households up to €100 per year.
The Affordability Taskforce report has been published on Gov.ie with a separate Energy Affordability Action Plan to be published in 2026. This will entail further analysis and investigation of potential options for targeted supports.
The Deputy may also wish to note that the Department of Social Protection can also provide support through the Additional Needs Payment to help households meet expenses, including those who face difficulties with fuel bills.
