Budget 2023: More energy credits possible next year if prices do not fall

Public Expenditure Minister Michael McGrath and Fine Gael Minister for Finance Paschal Donohoe. Photo Leah Farrell/RollingNews.ie

More energy credits could be given to households next year if energy prices do not reduce as the Government will “evaluate” how households are coping.

Public Expenditure Minister Michael McGrath has also indicated there could be an extension of cuts to excise duty on fuel beyond February.

He warned that it will be a “tough” six to seven months for people across the country when asked about the possibility of further energy credits next year, in addition to the €600 announced in the budget.

He told the Irish Examiner: “As with all of these things, given the level of uncertainty and the level of change that’s there, and the volatility, we will of course have to keep it all under review.

“I think we know as a Government the next six to seven months will be very tough, will be really difficult for people and we want to get them through that period in the first instance and then of course we will take stock of where we are all at at that point.” 

Finance Minister Paschal Donohoe also said the Government will “evaluate” next Spring when households have received their final energy credit announced in the budget to help with energy costs and will see how “our citizens are fairing.” 

He said the Government has always made it clear that they would review “where we are with VAT in gas and electricity and where we are on excise [duty] when we get to the end of February”. 

“Support is being provided for this year and into early next year and at that point then the Government will just have to evaluate where we are and how our citizens are fairing,” he added.

Mr Donohoe said he can’t give a guarantee that everything the Government has announced in the budget is going to offset “all of the change that’s taking place across our world and all of the change taking place in the Irish economy”. 

He said cost-of-living and budgetary measures announced “can make a real difference” but said he knows for many, people want more and for many what has been announced is not enough in their eyes.

On the introduction of a tax credit for renters, Mr Donohoe said there should not be a signal to landlords to increase rent and that landlords have to adhere to the regulations that form a key part of rent pressure zones.

He argued that a rent cap would only lead to more landlords leaving the private sector and rents going up even higher.

He said renters will need to apply for the tax credit with the Revenue Commissioners.