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Coalition of 11 NGOs call for no universal energy credits in Budget

Energy credits are once again being considered by the Government
Energy credits are once again being considered by the Government

Eleven non-government organisations have joined forces to put pressure on the Government not to provide further universal energy credits in the Budget.

Instead, they said targeted measures should be offered that will provide households facing energy poverty with immediate support and lasting relief, while also helping to reduce fossil fuel dependence.

"Universal energy credits are a short-term solution that offers temporary relief but fail to address the root causes of energy poverty, and do nothing to reduce our reliance on fossil fuels," said Clare O'Connor, Energy Policy Officer, Friends of the Earth.

"This Budget must prioritise retrofitting for the least energy efficient homes and the least well-off in society, as well as targeted social welfare increases - both of which have been proven to have a more lasting and equitable impact."

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An additional energy credit or credits are widely expected to be included in Budget 2025, which is set to be unveiled a the start of October.

The coalition said despite the universal energy credits given out by the Government last year, over half a million people went without heating due to cost.

They claimed untargeted one-off energy credits are a less effective use of public funds to tackle energy poverty than targeted measures.

The group includes Friends of the Earth, Age Action, Social Justice Ireland, Society of St Vincent de Paul, National Traveller MABs, INOU, the Jesuit Centre for Faith and Justice, Disability Federation Ireland, Irish Rural Link, Polio Survivors Ireland, and Clare PPN.

"Universal energy credits are not an efficient use of resources," said Michelle Murphy, Research & Policy Analyst at Social Justice Ireland.

"Higher income households, who have financial buffers far in excess of those on lower incomes, gain the same in cash terms as poorer households."

"This money should be invested in measures such as expansion of the Warmer Homes Scheme and extending the Fuel Allowance to those on the Working Family Payment."

The coalition wants a redirection of funds from universal energy credits towards targeted financial support measures and expanded access to retrofitting.

It is also seeking the introduction of a permanent increase in social welfare payments to help vulnerable households cope with rising energy costs

In addition it wants an acceleration in the the transition from fossil fuels through targeted retrofitting and a pilot Community Energy Advice Service.

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