Government is deeply aware and concerned about the pressures placed on households by high energy costs. Providing supports to alleviate this pressure has and will continue to be a priority for this Government.
While electricity credits played an important role in recent years, the Government took other actions in Budget 2026 to provide significant supports to enhance energy affordability including:
• a 15% or €5 per week increase to the Fuel Allowance. This will provide an additional €140 to over 450,000 recipients during the annual fuel allowance season;
• eligibility for the Fuel Allowance has also been expanded to include those in receipt of the Working Family Payment;
• the reduced VAT rate of 9% which is applied to gas and electricity was extended to 2030. This provides clarity and certainty to energy consumers and reduces energy bills for households by up to €100 per year; and
• in addition, Government has extended the €400 income tax disregard for households involved in microgeneration for a further three years to end-2028.
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.
The range of supports that were included in Budget 2026 represent a movement towards permanent supports with funding also provided to address structural issues such as retrofit and infrastructure which reduce energy costs in the long-run.
Budget 2025 introduced a fourth Electricity Costs Emergency Benefit Scheme which over 2.2 million households benefitted from. This was worth €250 in total per household.
Based on the previous estimate of 2.2 million Meter Point Registration Numbers (MPRNs), the cost of providing the amounts requested by the Deputy are included in the attached table. This takes account of the direct cost to the Exchequer plus VAT foregone.
Estimated Cost of Credits