Tánaiste suggests expanding fuel allowance eligibility amid rising energy arrears

Simon Harris said the fuel allowance was the most effective support for people on low incomes facing fuel poverty

Tanaiste Simon Harris (centre right) with party members at the Fine Gael Parliamentary Party meeting, held at Amber Springs Hotel in Gorey, Co Wexford. Picture: Clodagh Kilcoyne/PA Wire

There is “an argument” for expanding eligibility for fuel allowance, the Tánaiste has suggested.

Simon Harris has said the fuel allowance is “the most impactful way we can assist people who are on low incomes and who are at risk of fuel poverty”.

A total of 323,559 domestic electricity customers and 187,792 domestic gas customers were in arrears at the end of June.

An ESRI study in April found that only 36% of households in energy poverty are covered by the fuel allowance, which is a means-tested social welfare payment to help with the cost of heating homes during the winter months.

Asked about the figures in arrears on Friday, Mr Harris said: “Isn’t that an argument for seeing if there’s more that we can do in that space?”

He suggested this could be “expanding” eligibility.

The finance minister told RTÉ’s Morning Ireland on Friday that the fuel allowance had been increased in the last applicable period, with 500,000 households qualifying for direct cash payments towards their fuel costs.

Mr Harris, speaking from the Fine Gael think-in, said: “In relation to gas and electricity, we’ve already taken a decision to reduce VAT, and we’ve reduced the VAT in the last Budget.”

He added: “There’s no Government in the world that can insulate everybody from every cost pressure – what we can do in this Budget though, is across all of the levers at our disposal try and reduce costs in certain areas.”

While Mr Harris told the programme, “I don’t think we can rule out anything when it comes to energy”, he said energy credits are a “good use of public money”.