2026-01-15

1. Deputy Louise O'Reilly asked the Minister for Social Protection to quantify the material impact of the withdrawal of energy credits and the decrease in the real value of the fuel allowance has had on the at risk of poverty after housing costs rate and on the material deprivation rate, specifically in households at highest risk of poverty; if he has given consideration to a cost of living package targeting energy poverty; and if he will make a statement on the matter. [2822/26]

In keeping with my form, the question is fairly straightforward. I am curious to know whether the Minister has quantified the material impact of the withdrawal of energy credits. In real terms, the value of the fuel allowance has decreased because of the increase in energy prices. That is simple maths; the Minister will know that. Has he quantified, for his own information, the actual impact and lived reality for people?

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.

That is very regrettable. As the Minister very well knows, Social Justice Ireland described the Government's most recent budget as a recipe for austerity. It was made clear to the Government at that stage, not just by me and Social Justice Ireland but by others, that the value of the fuel allowance needed to increase in line with the cost of energy. We know that we pay, for reasons that are entirely of the Government's making, some of the highest energy costs in the European Union. We do not have some of the highest energy supports, however, in the European Union. There are 300,000 households in arrears at the moment. The policy of no disconnection during winter is very welcome but it does not take account of people on prepay meters who experience a "micro-disconnection". I asked whether the Minister had quantified the material impact of the fact that children are going to bed hungry and people with disabilities, as they told us yesterday in the audiovisual room, have to make the choice between being able to heat their homes and power their mobility devices or being able to eat. Those are the questions I want to ask. Has the actual impact been quantified?

We are very focused on energy poverty. That is why the fuel allowance increase is 15%, which supports over 460,000 households that require most support with energy costs. This is the first year the fuel allowance has been expanded to working families. Those on the working family payment will get a back payment in March of their fuel allowance backdated to 1 January. That will bring an additional 50,000 people in. As I said, we have also looked at other areas that directly impact on families, particularly children. That is why the record increases in child support payment are important. They give permanent increases in income to families on the lowest of incomes. This is the first time the fuel allowance has gone beyond a welfare payment to people who are on the working family payment. That is where I want to go. I want to make permanent increases that are not year to year or dependent on budgetary situations and have them as part of it. We work with our colleagues in the Department of the environment on other fuel poverty initiatives, including retrofitting and guidance, so we can reduce permanently the cost of energy bills as opposed to making temporary changes.

Any changes, temporary or otherwise, might be welcome, but the withdrawal of energy credits is causing real and genuine hardship for people. I see it in my clinics. I am sure the Minister does as well. He mentioned the energy affordability task force, but that is only a continuation of the other task force. It is a little bit "Father Ted" - is there anything to be said for another mass - that there is another task force or group. In truth, the number of people who are in energy poverty and in arrears with their energy bills is going up. It is going up simply because the supports that are there are not keeping pace. We know that the energy credits made a real and material difference in people's lives and to the number of people who were in arrears. The withdrawal of those credits has pushed people into arrears. These are bills they will have to pay at some point. While those who are not on prepay meters might not be disconnected, they will still have to find the money to pay for those. It is very clear that the increased supports that were given are not adequate. They do not keep pace with inflation and they certainly do not keep pace with the rising cost of energy.

The increase in the fuel allowance is 15%. That is a permanent increase; it will not be from year to year. We expanded fuel allowance to the 50,000 families who are on the working family payment. Again, that is a permanent increase and a fundamental change to the fuel allowance payment. We are absolutely focused on energy poverty. We are working with the Minister, Deputy O'Brien, to address the issues that cause energy poverty. We will continue to do that, but we have also addressed a lot of the areas causing family and child poverty by looking at the child support payment and giving record increases, particularly for those over the age of 12. The fuel allowance for 2026 is a €486 million investment in families across the country. It is a total of €1,064 a year for those who are on the fuel allowance. A sum of €486 million from my Department is a very significant measure. As I said, this is the first time it has been expanded. I will certainly have an eye to the fuel allowance, as my response from the Department to energy poverty.