Jack Chambers on energy credits: Government to move away from 'ad-hoc temporary supports'

The public expenditure minister confirms the Government’s shift from temporary energy credits to long-term investment, despite ongoing cost-of-living concerns

Jack Chambers promised that 'strategic investment' in the energy system would be central to a new national development plan. File picture: Leah Farrell

Jack Chambers has said the Government "wants to move away from a position of ad-hoc temporary supports" when it comes to energy credits, echoing comments he made last month. 

The public expenditure minister promised that "strategic investment" in the energy system would be central to a new national development plan.

Acknowledging significant cost-of-living pressures, Mr Chambers said that for Budget 2026, the Government "needs to examine mechanisms to try and support workers and families when it comes to cost of energy".

Mr Chambers' comments come after the Department of Energy released documents on Wednesday that showed a continuing high level of energy poverty.

According to the documents, as reported in The Irish Times, estimated annual bills remain 90% higher for gas and 61% higher for electricity than they were before the hike in energy prices that started in December 2020.

Earlier this year, the Government said it is highly unlikely the next budget will include energy credits or cost-of-living payments. In last year's budget, the Government announced that all households were to receive a €250 credit to help them cope with the continued high cost of energy bills over winter.

It was applied to all residential electricity bills and was paid in two €125 instalments. Some 2.3 million homes benefitted. The first payment was paid between November 1 and December 31, 2024, while the second credit was made between January 1 and February 28, 2025.

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Speaking on Morning Ireland on Thursday, Mr Chambers said: "We're doing a national development plan review and central to that will be the strategic investment in our energy system. 

"The context in which the Department of Energy set that out to minister (Darragh) O'Brien was that, with increased investment required in our energy system, there's obviously going to be increased costs as a result of that.

"What we're going to seek to do as part of our new national development plan is increase the central subvention capital investment in our grid and in our energy system. That will help mitigate some of the costs. 

What I've said in the context of energy credits is that we want to move away from a position which we've had in recent years of ad-hoc temporary supports.

"We want to move to a position where we set out the fiscal parameters in the context of a medium-term plan and that we plan the supports and the measures for businesses and consumers within those parameters. 

"I know there are still significant cost-of-living pressures for many families, workers and businesses in our economy and that's why, when it comes to the Department of Social Protection and measures that can be taken for Budget 2026, we need to examine the mechanisms which are there to try and support workers and families when it comes to costs of energy and when it comes to the supports that we've ring-fenced, for example with the carbon tax and supporting people with fuel poverty, and that has happened in recent years. 

"We have moved away from the level of inflation that we've seen in recent years and it's in that context in which we're setting out Budget 2026 later in the year. 

"All measures in the budget have to be progressive and targeted, particularly when it comes to pressure with energy bills. The social protection system is a mechanism to support people who face particular pressures."

Donald Trump's tariffs 

Mr Chambers also said that the Department of Finance and other government agencies have been carrying out “extensive contingency planning” to combat any possible “disruption and damage” to the Irish economy from US tariffs.

He said that either a blanket tariff announced across the EU or a more product- or sector-specific tariff would both be “significantly damaging because our whole economic model is on the basis of international trade, and we've got a very diversified export model across many different sectors.”

He added that the Government does not have "any specifics or details from the Trump administration about what [the tariffs] might involve".

Mr Chambers said that when the Taoiseach meets with president Trump in the Oval office next week he will emphasise the “broader balanced relationship that exists in economic terms” between the two countries.