The decision to cancel energy credits happened despite advice from officials that there was a stronger case for them this year, the Dáil has heard.
The advice was revealed under the Freedom of Information Act in documents released to Sinn Féin MEP Lynn Boylan.
Sinn Féin TD Pearse Doherty described the decision as “scandalous” and contended that energy credits were ditched because the general election was over.
“The truth is that working people were not a priority in your budget,” he said.
He added that people are under huge financial pressure and they see no end in sight.
The Taoiseach admitted that people are under pressure and Government wants to focus its resources on those with the lowest incomes.
There was a €2 billion social protection budget allocation which is targeted at pensioners and those with low incomes in what is a targeted approach to help the most vulnerable, the Taoiseach stated.
Micheál Martin said that the fuel allowance was increased and extended and 26% of households are now able to receive the payment.
The reduction on VAT for energy bills will be kept in place until 2030, the Taoiseach said.
In the previous three budgets the Government included one-off energy credits (€600 for 2023, €250 for both 2024 and 2025).
However, it said that such supports were not sustainable and that a different approach was needed in Budget 2026.
Minister for Finance Simon Harris told RTÉ’s Six One that it was a “misrepresentation” to suggest that he chose to scrap one-off energy credit payments against the advice of civil servants.
He said the Government wanted to take a “more targeted approach”, adding that the fuel allowance was expanded and increased while VAT was reduced on energy bills.
He said: “Let’s be clear, a TD in Dáil Éireann doesn’t need an energy credit, so we do have to move away from that universal aspect.”
He said he believes energy bills are too high, and that is why more has been spent on targeted supports.
Ms Boylan said that documents released to her under the Freedom of Information Act showed that the Government scrapped the energy credits despite advice from officials.
Speaking on RTÉ’s Today with David McCullagh, Ms Boylan said: “The cost of living crisis has not gone away, and people are actually struggling more now than they were even a year ago.”
She said the case for not including the credits in the budget “just didn’t stack up”.
“According to the Department’s own analysis, when you take away the energy credits and the vast reduction, the difference was €321 extra that households would be expected to pay this year.
“Energy bills now are more expensive than they were at the height of that crisis in 2022 after the illegal invasion of Ukraine.”
Ms Boylan also said the Government was not doing anything to tackle price increases by energy companies.
“Bar Electric Ireland, all of the electricity companies have increased the cost of electricity,” she said.
Ms Boylan said that not providing the energy credits was a “political choice”.
“It’s not any more expensive than the vast cost that they just gave to developers for apartments that had planning permission and that have already got buyers,” she said.
“A political choice was made.
“You can’t leave people at a cliff edge of just pulling the rug from under them in terms of the energy credits, and at the same time, not try and bring down the cost of electricity for people.”
Ireland ‘vulnerable’ due to high dependence on importations of hydrocarbons, says minister
Minister for Culture, Communications and Sport Patrick O’Donovan said the Government has taken the decision to reverse “some of the previous policies that were in place, particularly around gas and gas importation into Ireland”.
Speaking on the same programme, he said: “We’re highly dependent on importations of hydrocarbons from around the world, it makes us very vulnerable. It makes energy prices here very expensive.
“We probably have some of the most expensive energy prices of any EU member state. We’ve acknowledged that. That’s why we have the VAT rate that we have on energy.
“And that’s why we have decided to reverse the policies of the previous government with regards to, for instance, liquefied natural gas and offshore wind to try and expedite it.
“That’s why this week the Government has brought forward proposals with regard to the slowness and the tardiness of things like offshore wind, of interconnectivity and of pylons, because all of these delays, driven primarily because of objections is actually driving up the price for consumers all over the country.
“So, we are dealing with it.”
He added; “we’ve also dealt with it in the Budget in the context of the increase to the fuel allowance and we’ve also dealt with it in terms of Sustainable Energy Ireland”.
