The National Energy Affordability Taskforce was established in June 2025 to identify, assess and implement measures that will enhance energy affordability for households and businesses. The first Report of the taskforce was published last month. This report analysed recent trends in energy costs and related matters, including arrears, and set out a range of options for consideration as part of the Budget 2026 process.
The Government has made a number of important commitments in respect of addressing the continued high cost of energy. The Programme for Government acknowledges the increased energy cost pressures on households and businesses, and Budget 2026 included the introduction of a number of measures to address energy affordability including:
• a €5 per week increase in the Fuel Allowance bringing the payment to €38 per week. This equates to an increase of more than 15% and will provide an additional €140 to over 450,000 recipients during the annual fuel allowance season;
• this payment has also been expanded to include those in receipt of the Working Family Payment;
• Budget 2026 provided record funding of €558 million for the Sustainable Energy Authority of Ireland residential and community energy upgrade schemes, an increase of €89 million on the Budget 2025 allocation to support delivery of the National Retrofit Plan. Research suggests retrofit measures can save a household up to €1,100 per year in terms of energy; and
• the reduced 9% VAT rate on electricity and gas has been extended until 31 December 2030, to help contain household energy costs.
It is important 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. There are also a range of Commission for Regulation of Utilities customer protections in place, including disconnection moratoria.
The Affordability Taskforce is now preparing for an engagement and consultation process to inform the development of an action plan to be published mid-next year. The taskforce will also continue to bring an all-of-Government approach to researching and assessing options to enhance energy affordability for households and business.