The Government cancelled energy credits in the budget for struggling despite “stark warnings” from officials that the case for them “was stronger this year than last”, the Dáil has heard.
Sinn Féin finance spokesman Pearse Doherty highlighted a Department of Energy internal analysis obtained via a Freedom of Information request by party MEP Lynn Boylan.
It found that “annual bills were set to be higher in October 2025 than they were in October ‘24” and “households would have to find an extra €321 to cover their energy bills this winter, in the absence of energy credits”.
Mr Doherty claimed the Government “pushed forward” with the withdrawal of this support despite the officials’ warning, and “an energy scheme for struggling households was shelved”.
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But Taoiseach Micheál Martin said the Government “wanted to concentrate and prioritise our resources to those of the lowest incomes and those who would be most impacted by the energy price increases”.
He said Sinn Féin wanted to add another €2 billion to the budget in “short-term intervention, which would apply to very wealthy people – millionaires”.
Some €3.3 billion had been allocated through energy credits “that didn’t have any impact in terms of reducing the permanent cost of energy”, added Mr Martin.
Moreover, the Departments of Finance, Public Expenditure and Social Protection would not have supported “universality of energy credits”.
During Leaders’ Questions, Mr Doherty said it was “scandalous” and explicit by the day that the Coalition ditched energy credits because the election was over. He claimed the Government felt it could make promises without consequences while households are “paying a heavy price for your cynical choice”.
He noted that now “more than 500,000 households can’t pay their energy bills. Your decision to cancel energy credits means that even more families are going to be pushed over that line.”
The Taoiseach said, however, that Sinn Féin’s budget would have added 2.5 per cent to the inflation rate and would “have disadvantaged people even more”.
The Taoiseach acknowledged the views of the Department of Environment, but across broader Government the priority was those on lowest incomes who would be most affected.
The Government increased and expanded the fuel allowance. Moreover, 26 per cent of households are now entitled to that allowance “and that is a help to people facing energy costs”.
He said there was “huge investment in terms of the retrofitting, the warmer homes programme” with about 50,000 people benefiting from microgeneration supports.
Child poverty had also been prioritised, he said, with an €8 weekly increase for children under 12, bringing that weekly payment to €58, and €16 for those over 12, bringing it to €78. “These are unprecedented increases,” he said.
He added that the reduction in VAT to 9 per cent on energy costs would be maintained until 2030.
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Separately, Tánaiste Simon Harris echoed the Taoiseach’s comments, saying that offering universal energy credits rather than targeted measures in the budget would have been “imprudent”.
The energy credits had benefited everyone equally and Mr Harris asked: “Are we really saying, for example, that a TD in Dáil Éireann should continue to get an energy credit when there’s children hungry in our country today?”
He said they decided that “in probably every other country parties on the left would actually support, where we decided to target measures to those most in need”.
He also cited the increase in fuel allowance and its expansion “to more people than ever before”. They had reduced the VAT and “these are real measures costing significant amounts of money to target the support at those who most need it. And I think to do anything else would have been imprudent.”
