Winter fuel credit is back – but it’s less than last year

FAMILIES will be given cash help of at least €450 each toward their energy bills over the next six months, it was announced.

The Government yesterday confirmed that energy credits will return, in three instalments of €150 – below the €600 in three payments delivered last year.

Although gas and electricity prices are falling at last, they are still way above pre-pandemic levels and are continuing to put the squeeze on households.

Finance Minister Michael McGrath told the Dáil yesterday: ‘I know as we head into the winter, energy bills will be to the fore of people’s minds. This is why the Government will once again be stepping in to provide direct help with household energy bills.’

Despite recent falls in power tariffs as a price war rages between suppliers, electricity prices are still 25% higher than a year ago and gas prices are a massive 36% higher.

Public Expenditure Minister Paschal Donohoe explained exactly what the help would consist of.

‘All households will receive a further set of credits to assist with energy bills over the winter period. Three credits of €150 each will be provided between the end of this year and April of next year,’ he said.

A €300 lump-sum payment will also be paid to people on the Fuel Allowance over the final three months of the year.

The payments will be a welcome bonus for households as they face into winter, when fuel bills are higher.

Eoin Clarke, of utility switching site Switcher.ie, said: ‘The return of the energy credit will be a huge relief for households facing fuel poverty this winter.

‘However, at just €450, the credit is €150 less than last year’s budget, so with energy bills still sky-high, the news may be cold comfort for struggling households,’ he added.

Despite recent price cuts to energy, prices this winter will still be around twice their normal levels, according to Daragh Cassidy of rival switching site Bonkers.ie.

‘I think the €450 credit was as generous as it could afford to be. On top of this, I welcome the commitment to keeping the reduced rate of VAT on energy bills at 9% for another year.

‘Hiking this back to 13.5% would have added over €150 a year to the average household’s gas and electricity bills,’ he said.

Motorists will be relieved that the planned final reversal of the excise duty cut on petrol and diesel has been postponed for six months, until April of next year.

However, an increase in the carbon tax will still add 2.5 cent a litre to diesel and 2.1 cent to petrol.

If the full excise duty cut had been restored it would have added eight cent to the price of a litre of petrol and six cent to diesel.

David Blevings, spokesman for the Irish Petrol Retailers Association, expressed satisfaction with the decision to delay the excise increase after the organisation had written to the minister highlighting the challenges it would pose for both consumers and retailers near the border with the North.

‘Energy credit will be a huge relief’