Budget 2027: Tánaiste says help is on the way for households facing higher energy bills

The Tánaiste outlined measures being considered as opposition parties called for further support for households facing rising energy costs

Tanaiste Simon Harris speaking to members of the media before a Cabinet meeting at Government Buildings. Picture: Cillian Sherlock/PA Wire

Households will get help with the cost of energy in the Budget, the Tánaiste has said.

At Leaders' Questions on Thursday, finance minister Simon Harris said “help is on the way” for hard-pressed customers in the Budget.

Sinn Féin's Pearse Doherty had raised the issue of high prices, saying there “is no doubt that people are being ripped off from every direction”.

“The weekly shop, fuel and now electricity and gas prices are all going up and up. More and more of people’s hard-earned wages are being swallowed up just to cover the basics.

“In just 11 days, one day before the Budget, there is going to be a wave of increases in electricity prices. SSE Airtricity will increase its prices, Bord Gáis will follow and Energia will follow after that.

“Together, these increases are going to affect 1 million households out there. For families using gas and electricity, the increase will be more than €300 a year,” he said.

Government plans to help

In response, Mr Harris assured Mr Doherty the Government would act in the Budget on October 6.

“I want to say to people in this country that help is on the way through the Budget in 12 days’ time.

“There are a number of issues that we are actively endeavouring to advance to provide assistance and certainty to people when it comes to energy, while also being honest with people that there is no government in the world that can absorb all of the impact of a global energy shock.” 

Mr Harris said this help will be provided in four ways, indicating the first will be to delay excise duty cut reversals over the winter.

Secondly, Mr Harris said, the Government will examine the issue of carbon taxes, saying he was “particularly concerned by the home heating situation and the gas situation”.

“Similarly, we have to be honest with people on this. There is a limitation to how much you can do on that without bringing yourself into a challenge with the European system, and we do not want to tip that balance wrong, but this is certainly something we are going to actively look at.

“Third, there are decisions we can make for parts of our society and sectors within our economy that are most at risk of fuel poverty or most dependent on fuel.

“I am thinking of lower income households and those who qualify for the fuel allowance. The fuel allowance season will start on Monday, with more than a quarter of households in the country, 500,000 households, benefiting from that.

“I am also thinking of our farmers and hauliers, who are particularly dependent on fuel, and our supply chains are dependent on them.” 

Mr Harris added the Government will “help households and businesses with the actions that they are already trying to take to reduce their electricity and energy bills”.

Call for windfall tax on energy profits

The Tánaiste would later say that there is a “compelling case” at an EU level for a windfall tax on energy profits, as suggested by Social Democrats TD Jennifer Whitmore.

Ms Whitmore also called for a €400 energy credit “for low- and middle-income earners, to give them some immediate relief from skyrocketing bills”.

Mr Harris said some energy companies “are benefiting very significantly from profits, not because they’re enterprising, just because the Strait of Hormuz is shut”.