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Winter energy credits: NGOs on why they shouldn't be universal

A number of groups are urging the Government to reconsider giving out universal energy credits in Budget 2025
Jack Quann
Jack Quann

22.05 23 Sep 2024


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Winter energy credits: NGOs on...

Winter energy credits: NGOs on why they shouldn't be universal

Jack Quann
Jack Quann

22.05 23 Sep 2024


Share this article


Several non-governmental organisations are urging the Government to reconsider universal energy credits in Budget 2025.

They claim untargeted one-off energy credits, like those introduced in the past two budgets, are a less effective use of public funds to tackle energy poverty than targeted interventions.

The groups - which include Friends of the Earth, Age Action, Social Justice Ireland and the Society of St Vincent de Paul - want to see targeted measures that will provide "immediate support and lasting relief" for households facing energy poverty.

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Friends of the Earth Energy Policy Officer Clare O'Connor told Newstalk Breakfast the energy credits still saw people go cold.

"We're basically saying that we need to see targeted measures in Budget 2025 instead of the universal electricity credits that we've seen over the past couple of years," she said.

"If you look at 2023, €1.2 billion was spent on these universal energy credits - but despite this, half a million people still went without heating in 2023.

"That's one fifth of single-parent households and 27% of people with disabilities.

"So we think high energy costs are disproportionately impacting on low-income and vulnerable households like older people [and] disabled people but we're not seeing targeted support from the Government."

'Permanent increase in social welfare'

Ms O'Connor said while there are targeted measures like the Fuel Allowance, these are not enough to help those most at-risk.

"Actual rates of the Fuel Allowance haven't increased in line with inflation over the past number of years," she said.

"What we're calling for is a permanent increase in social welfare payments like the Fuel Allowance and to restore its purchasing power because the purchasing power of the Fuel Allowance has gone down, actually, in the last number of years.

"So we need to see the purchasing power of that restored but also expanding its eligibility for low-income families like people on the Working Family Payments.

"Expanding the eligibility of the Fuel Allowance will also allow people to avail of the fully-funded retrofit schemes."

Ms O'Connor said that longer-term solutions are needed "to improve the energy efficiency of people's homes to make sure they're more comfortable and not living in cold homes".

She added that giving the universal energy credit to high-income households who aren't struggling "is not really an efficient use of public phone funds".

Three energy credits of €150 were paid to households as part of Budget 2023 in December, January and March.

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Budget 2025 Clare O'Connor Energy Credits Friends Of The Earth Fuel Allowance Newstalk Breakfast Social Welfare Universal Winter Energy Credits Working Family Payments

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