Pressure growing on the Government to pay energy credits in upcoming Budget

Most cite energy costs as their main worry ahead of the Budget.

Some 57pc of people rank retaining energy credits and extending Vat reductions on energy as their top priority for Budget 2026, according to polling data from Amárach Research for Dublin-based Rockwood Public Affairs.

This will increase pressure on the Government to offer some respite from the rising costs in the form of another round of energy credits to offset electricity and gas bill hikes.

The Government has insisted there will not be an additional cost-of-living package in the Budget.

It comes as reports indicate that the third-level student fee is likely to be reduced by up to €500 in the Budget.

This reduction in the student contribution for college could be made permanent, the Irish Examiner has reported. The student contribution fee is currently €3,000 a year.

Social Protection Minister Dara Calleary. Photo: PA

But Social Protection Minister Dara ­Calleary has ruled out introducing a second tier of child benefit for lower-income parents.

The second tier would have seen a higher monthly payment given to parents on low incomes or in instances where children were at risk of poverty.

Mr Calleary said the child benefit system would need to be “completely rejigged” and this will not be possible by October 7.

Energy costs have moved centre stage after Bord Gáis Energy, Pinergy, Energia and Flogas said they were increasing electricity prices next month, while SSE Airtricity has already raised both electricity and gas prices this year. More than one million households will be impacted.

Electric Ireland has promised to leave electricity prices unchanged, while it is cutting gas costs for residential customers.

Families are due to be hit with annual higher costs of up to €200 for electricity.

Last year the Government paid €250 in energy credits, with higher amounts paid in the previous two years.

However, some members of the Government have been playing down the prospect of any further energy credits.

Tánaiste Simon Harris said at the Fine Gael party’s pre-Dáil think-in: “We’ve got to move away from this kind of one-off ‘will I get, won’t I get?’.”

However, there are some indications that scaled-back credits of €80 are still on the cards.

Research commissioned by Rockwood Public Affairs, which was founded by former Labour Party senator Lorraine Higgins, shows that energy credits are a key issue for large numbers of households.

Also high on the list of priorities are housing, personal tax rates, and the need for infrastructure investment. Reducing Vat on hospitality ranks well down the list of priorities.

The Government’s commitment to lower the Vat rate for hotels and restaurants could use up funds available for income tax cuts.

“The findings of this polling show that energy costs and the need to invest in Ireland’s infrastructure are key priorities for the Irish public ahead of Budget 2026,” Ms Higgins, who is managing director of Rockwood, said.

She added that energy costs are a massive burden for both households and businesses across Ireland.

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