The Government is committed to protecting vulnerable households from the impact of energy costs through a combination of financial supports, energy efficiency, awareness initiatives and investment in programmes to improve the energy efficiency of the housing stock. The overall strategy to combat fuel poverty and energy poverty is under the remit of the Department of Climate, Energy and the Environment. However, the supports provided by the Government are cross-departmental and, in this regard, my Department is represented on the energy poverty action group and the energy affordability task force.
In budget 2026, the Government committed €8.1 billion in additional spending, including over €1.15 billion in additional social welfare spending. As part of that budget, I was delighted, last October, to announce that from 1 January, the weekly rate of fuel allowance would increase by €5 per week to €38. That is a 15% increase, which will support over 460,000 households requiring Government support with energy costs. Importantly, from a child poverty perspective, I have also extended eligibility for fuel allowance to an additional 43,000 families in receipt of the working family payment. These increases are on top of a €10 per week increase in the core payment rates, which are 4.1% for most schemes.
Over 330,000 children will benefit from the largest ever increase in the child support payment of between 16% and 26% per week, which will be €8 per week for children under 12 and €16 per week for children aged 12 and over. Some 35,000 families will benefit from an extension of the back to school clothing and footwear allowance. In addition, almost 49,000 recipients and over 100,000 children will benefit from an increase to working family payment income thresholds of €60 per week.
Due to the measures taken by the Government in recent years, recent CSO data show a welcome reduction in enforced deprivation rates in 2025, including in relation to energy. We continue to monitor the cost-of-living situation carefully. However, given the additional supports provided by the Government as part of budget 2026, which are permanent, not temporary, supports, a cost-of-living package targeting energy poverty is not being considered at this particular time.