Dáil Éireann Debate, Thursday - 18 December 2025
124. Deputy Jennifer Whitmore asked the Minister for Climate, Energy and the Environment to explain the rationale behind not providing targeted energy credits in Budget 2026; and if he will make a statement on the matter. [71564/25]
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 fundamental drivers of high energy costs.
The National Energy Affordability Taskforce was established in June of this year to identify, assess and implement measures that will enhance energy affordability for households and businesses. The first report of the 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; and
• record funding of €558 million is allocated for Sustainable Energy Authority of Ireland residential and community energy upgrade schemes (including the Solar PV Scheme). 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.
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 taskforce is now preparing an engagement and consultation process to inform the development of an Energy Affordability Action Plan to be published mid-2026.
