Pearse Doherty: Demand energy credits now and target them
Pearse Doherty addressed the Dail amendment from Deputy O'Callaghan, arguing that proposed household income thresholds are too high and that energy credits must be delivered immediately and targeted effectively. He criticised the government for failing to design a system linking the CRU and Social Protection to deliver targeted credits, and outlined the need for urgent action ahead of Budget 2027 and planned infrastructure investment.
Amendment and immediate need
Pearse Doherty welcomes the amendment calling for a report on the impact of a 400 euro energy credit for households on incomes up to 70,000 euro. He stresses that the principle of energy credits and targeted support is correct, but that the threshold proposed is low given the scale of the crisis affecting hundreds of thousands of households.
Delivery and targeting
Doherty highlights that the CRU has confirmed targeted credits cannot be delivered in days or weeks but can be delivered if the government had done the preparatory work. He urges the state to join up systems between the regulator, the Department of Social Protection and the Department of Finance so credits flow directly to bills and are targeted at those who need them most.
Failings and fairness
The TD is sharply critical of the government for years of inaction, calling it unacceptable that the toolbox to deliver targeted energy credits to families does not exist four years into the crisis. He warns against credits reaching holiday homes and other inappropriate recipients while ordinary households struggle to pay electricity and gas bills.
Budget context and infrastructure
Doherty accepts that reporting and costings may feed into the budgetary process for 2027 and notes government announcements on large-scale investment in electricity infrastructure across 2026 to 2030. He says those investments must be matched by policy measures that ensure vulnerable households receive timely and properly targeted support.
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Go raibh maith agat, Sean Comhairle, and I welcome this amendment from Deputy O'Callaghan. I assume the amendment refers to disposal income in relation to household, but I just take it in relation to that. I do believe £70,000 is a low figure, given the scale of the energy crisis, and particularly given how far it has reached with 320,000 households who can't pay their electricity bills, and one in four that can't pay their gas bills. Obviously to income earners on quite low wages of €35,000 each would not be eligible for that support, and I know plenty of people who are on what would be a low income of €35,000 each and would really, really struggle, so I think that number is low in my view, but that doesn't take away from the actual substance of the report that's called, because we can always argue about what threshold you introduce it or whatever, it's really about the principle in my view of actually ensuring that first and foremost that there is energy credits, that there is support for individuals, because of the scale of the challenge that so many households and families are facing, and secondly the point here is that they should be targeted, and this is something that we in our party have sat down with the CRU many, many years ago actually, and discussed this with them. We don't call for targeted measures immediately, because it can't be done. We need to be realistic in relation to what can be done next week, so the CRU has made it clear to us that it can't be delivered in a week, it can't be delivered in two weeks, but it can be delivered, and in fairness the government have had years to actually deliver a system between the CRU and social protection that actually would allow for the targeting of energy credits in relation to what Sinn Féin has put forward, which is €400, but what we need right now in relation to the supports is actually money flowing into the coffers now, not in October, not in November, but now, and that's why we continue to argue that the energy credits need to be delivered right now. Obviously where the mistake has been is that the government haven't designed a system, and if the system was designed you would have been able to actually then target them, and then we could have a genuine debate about whether €70,000, €80,000 or whatever number is the point that you target them at, but I agree with the amendment in relation to two points. One is energy credit should be available, and the second one is they should be obviously targeted, but the question I would have to the Minister is, this is a part of the tool now, unfortunately because of the high energy costs that the state is paying. There was a report out just last week saying that we've got the, you know, we know we're the highest electricity cost in Europe, now we're told we're the second highest electricity cost in the world, like this stuff is mental. From a country that used to have some of the cheapest electricity costs, and we still have companies making huge profits on the back of ordinary people, and the government simply hasn't done the homework to actually design a system between the regulator, between the Department of Social Protection and Finance to actually look at how you can ensure that energy credits can flow to people in a very simple, straightforward way, that people don't have to apply to it, that it just comes off the bill, but that it is able to be targeted. And that's a case of joining up systems and actually doing the homework, and I would really urge the government to actually do that work, and I think that, you know, these type of amendments in terms of calling for a report is the instigation of that. So I support the amendment, as I said, I have small reservations in relation to the household income for the reasons I've outlined. I think that many households that would be struggling would still not get the benefit of this here, but more importantly is that there's no point calling for something unless the system is created, and I think that's the intention behind the amendment, in fairness, to force the government into doing something that you should have done four years ago. Like, the government probably may turn around in October and introduce energy credits. See if you do, folks. Like, first of all, they should be delivered now, but for God's sake, do the work. Do the work so that in a couple of months' time that you actually have the ability to target them or not. Energy credits, we called it out so many times, they should not be going to holiday homes, folks. There's people, like, there's people that get energy credits, like, you know, that have multiple properties in this house and elsewhere that get energy credits. It's nuts. Like, it is absolutely nuts, and it went on for years and years and years. Like, and at the start of a massive challenge, when things happen, sometimes government has to respond fluidly and all the rest, and, you know, you have to do things, and people get supports that maybe they shouldn't have got. We've seen it with the pandemic and so on and so forth, but that's all right in the first couple of weeks or even the first months of a crisis. That's not acceptable four years on. It's not acceptable that it does not exist in our toolbox that we can deliver energy credits to families, and that it is an ability between the department and the CRU to actually target them at whatever level that we agree. That it simply doesn't exist is appalling, and is an indictment of the government and its lazy attitude to actually dealing with these issues and actually allowing for that type of measure to exist as part of your toolbox so that it can actually support households at a time of need. Thank you, Ken Corley, and thank the Deputy for raising this issue, and I suppose to be fair to the Deputy, he is proposing for the amendment calls for a report to be published within three months of the implementation of the new mineral oil tax rates on the impact of energy credit, the impact of an energy credit of 400 euro for each household with an income up to 70,000 euro per annum. And while I accept what he's trying to do is generate a debate here today, it's not going to put a cost on the exchequer here and now, but I'm presuming what you're trying to do is ensure that this can feed into the budgetary process for the budget that is a number of months away. And I do agree, and I said at the outset, I do believe that the way we should be helping people is through targeted supports. I think we have demonstrated our commitment to helping those who are at most need of support in relation to the fuel allowance, in relation to extending the eligibility criteria for the work and family payment, which ensured those extra 40,000 people on the work and family payment got fuel allowance for the very first time at this time, but we do need to go further. And there is an acknowledgement, certainly from my party in government, that there are a cohort of people who are falling short of some of the supports that were introduced. And that's why there is a determination by us in government to ensure that we look to those in the upcoming budget. And the budgetary process is well underway in terms of the budget for 2027. Only in the last number of days, we had the National Economic Dialogue, which brings together civil society, government, union representatives, representatives of business, academia, and research. And just to say that my department will be looking at all available data from the CSO, from DSRI, and from other state agencies and representative bodies to put together a budget that will be fair, that will be impactful, and that will be progressive. And I think that's what we want to achieve. In the next number of weeks, we'll see the summer economic statement, which will outline the spending parameters open to us for budget 2027. And I can assure all deputies that all data will be looked at to ensure that we do bring forward a budget that is fair. And you will have the opportunity when Budget Day comes here to present an alternative budget, as is the case in every single year. And at that stage, you will have to come forward with proposals that are costed, and we will have an opportunity to compare our respective positions at that time. You made a point, and I suppose this is a point that has been made on a number of occasions in terms of cuts that was implemented to particular sections of society when temporary measures were concluded. The difficulty is when you introduce temporary measures, and when those temporary measures are reintroduced for a period of time, people tend to have them embedded into their daily living and their expectation. Your reference in particular to people on a disability payment, that when their temporary measures expired, they were at a loss, and that was the case. But there were temporary measures at a particular time, and there is a commitment and work is well advanced in relation to introducing permanent measures to ensure that we put in place the right supports, not on a temporary basis, but on a permanent basis into the future. And I think you will see again Budget 2027, government living up to our commitment in that regard. In relation to, again, investment into our infrastructure, it is important that we invest into our infrastructure, and that's why government approved a landmark €3.5 billion investment in Ireland's electricity-grade infrastructure across 2026 to 2030 as part of the national development plan. This represents the largest single investment in the country's electricity network in its history. €1.5 billion was allocated to the ESB networks and €2 billion to AirGrid, which will enable both companies to significantly increase capital investment to expand our onshore and offshore electricity transmission and distribution network infrastructure, which is critically important as we move away from fossil fuels. The Electricity Supply Amendment Act of 2025 in November of last year provided the legal mechanism for the state to make a €1.5 billion equity investment in ESB networks and increase the statutory borrowing limit of the ESB from €12 billion to €17 billion. The €1.5 billion was transferred from the central fund to the ESB in mid-December, ensuring the ESB networks can begin delivering on that ambitious onshore green investment programme next year. So, work is happening in relation to putting in place the necessary investment in the infrastructure to make that transmission. I think we're all at one when we would like to see that accelerated and done in a more efficient manner.
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