Energy credits should target those at risk of fuel poverty, not high earners

Universal electricity credits should be scrapped in favour of a means test based on income, according to a Social Democrats TD.

Deputy Jennifer Whitmore said holiday homes should also be excluded from the Government scheme.

Three energy credits are due to be given to every household in the country under plans announced in Budget 2023.

These credits will be paid in three instalments of €200, the first of which is due before Christmas. Two more instalments will arrive in the new year, costing a total of €1.2 billion.

Deputy Whitmore noted that this universal approach means every home will get the credit, even unoccupied ones.

"It's a waste to taxpayers money, to be honest, because the individuals who are well enough off to afford not one home but two homes will get a double credit essentially.

"When you add it all up together, it actually amounts to €50 million over the course of the year that the Government will spend on electricity credit for holiday homes," Deputy Whitmore said.

“It is simply ludicrous that up to 62,000 holiday homes will receive three energy credits totaling €600 between now and early next year. Out of the €1.3 billion set aside for energy supports in this package, €37 million will benefit the owners of second homes, who have lower bills than normal households and clearly don’t need the payment.

“This is on top of the €12 million already paid to holiday home owners earlier this year, bringing the total figure to almost €50 million.

“It is not credible for the Government to continue to claim they cannot make targeted payments due to the complexities involved. One year since this crisis was flagged, what exactly have they been doing?

“For the second time this year, we are again dealing with emergency legislation instead of taking a targeted approach to reducing consumers’ energy bills. This is bad planning and bad governance.

“Those families and individuals most at risk of fuel poverty should have been prioritised for the highest energy support payments in advance of this piece of legislation.

“However, the Government seems intent on pushing through a universal scheme that will equally help high-earners and low-income households. Instead of benefitting the better-off, this money should go towards insulating the most vulnerable in our society from energy inflation,” Deputy Whitmore said.