Budget 2027 'must target people most at risk of fuel poverty'

The Just Transition Commission of Ireland recommends against universal energy credits and broad fuel price cuts, instead proposing 'targeted supports and enduring solutions that reduce exposure to future energy price shocks'. Picture: iStock

Budget 2027 should prioritise cost-of-living supports at households most exposed to energy poverty and transport disadvantage, the Government has been told.

The Just Transition Commission, an independent advisory body to the Government, urged in its pre-budget submission for long-term certainty for community climate action projects alongside investment in housing retrofits and public transport infrastructure.

“The transition to climate neutrality is not simply about reducing emissions,” its chair Ali Sheridan said.

“Done well, it can improve quality of life, create new opportunities for workers and communities, strengthen regional economies, and reduce the pressures that households face from volatile fossil fuel prices.”

The run-up to the Government’s next budget, due to be released in October, is expected to be dominated by what supports are given to households to help deal with surging fuel and energy costs.

Price surges due to war on Iran

In the wake of price surges amid the Israeli/US war on Iran and closure of the Strait of Hormuz, measures have already been taken to reduce fuel prices. Further support is expected with Tánaiste and finance minister Simon Harris indicating that a personal income tax package will be included in this and future budgets under this Government.

Ahead of the National Economic Dialogue bringing stakeholders together next week, the Just Transition Commission said rising energy costs, transport pressures, and housing challenges are closely linked to Ireland’s continued dependence on imported fossil fuels.

It argued that Budget 2027 must focus on the solutions that will reduce our exposure to future price shocks while supporting households and communities.

“The Commission recommends against universal energy credits and broad fuel price cuts, as they risk delaying investment in measures that permanently reduce fossil fuel dependence,” it said in its submission.

“Priority should instead be given to targeted supports and enduring solutions that reduce exposure to future energy price shocks.”

Part of its immediate recommendations are targeted electricity supports for low-income households, accelerated investment in retrofit, renewable energy, and storage capacity, and greater support for rooftop solar particularly for low-income households.

Alongside that, it called for an expansion in eligibility and duration for the fuel allowance, and raising the income thresholds for the working family payment while also ensuring communities are brought along in measures to adapt to our changing climate.

Ali Sheridan chairs the Just Transition Commission of Ireland. The independent advisory has just published it pre-Budget 2027 submission. Picture: Marc O’Sullivan

It said: “Public support for climate action depends not only on the outcomes of the transition, but also on whether people feel they have a meaningful role in shaping it. Participation, transparency and long-term community investment are therefore essential components of a just transition.”

A long-term focus must also be put on reducing consumer energy bills through investment in grid infrastructure and renewable energy.

Ms Sheridan added: “The decisions we make now will shape Ireland’s economy and society for decades to come.

“This is a window to address long-standing structural challenges, reduce our dependence on imported fossil fuels and build a transition that is fair, inclusive and resilient.”

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