Simon Harris ‘can’t rule out’ energy credits as 14% of households struggling with bills

The Minister for Finance has said that energy credits cannot be ruled out as household are dealing with the high cost of bills – it comes as new stats show 14% of households have been struggling

Tanaiste Simon Harris has said the government can’t rule out further energy credits.

Energy credits for all Irish households had become the norm in recent budgets, with Budget 2025 rolling out two credits of €125. However, the measure was dropped for Budget 2026 as the government moved away from one-off measures in their cost-of-living package.

The credits had been a universal boost available to all households, no matter their income.

While they were originally introduced to combat rising energy costs as a result of the Ukraine war, they haven’t been a feature of the government’s fuel packages in response to the Iran crisis.

However, earlier this week Minister for Finance Simon Harris admitted they may make a comeback.

Speaking to Claire Byrne on Newstalk, he responded to the question of energy credits: “If the energy crisis is continuing into the winter, it’s going to be vastly more difficult for people than it is in the summer.

“Today is a bright, sunny day as I came in here; it’s a very different scenario for people trying to heat their homes in the winter and Government can’t rule out any further interventions.

“But that shouldn’t be the only conversation.”

He continued to talk about measures for Budget 2027.

“We cannot approach a cost of living crisis by thinking the only answer is social welfare subsidisation,” he added.

“One of the things you can do during a cost of living crisis, one of the things you can do anyway to help make sure work pays is to allow people to keep a little bit of their own money.

“So, there will be an income tax package; the composition of it, what you do with USC, thresholds, rates, tax credits – they’re all a matter for proper, detailed discussion across Government.”

It comes as new stats from the Economic and Social Research Institute (ESRI) shows that 14% of Irish households in 2024 said they were unable to afford adequate warmth or pay energy bills in full.

The findings are based on research carried out before the recent rise in energy prices caused by the war in Iran.

The ESRI said that households experience energy poverty when they are unable to afford essential services, such as adequately heating their homes, lighting, cooking or powering appliances.

This poverty, it said, is driven by a combination of low disposable income, high energy costs and poor housing and is strongly related to income inequality, unemployment and deprivation.

When multiple measures of energy affordability are taken into account, the ESRI added, 30% of households experience some form of energy affordability challenge.

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