Simon Harris (Wicklow, Fine Gael) | Oireachtas source

People are asking legitimate questions tonight about what we will do to protect those vulnerable to fuel poverty. It is a really important point. We need to look at the overall impact of a €6 increase on household costs. In the grand scheme of things, it is relatively small but it is fair to say that the burden of increased carbon taxes falls unequally. In lower income homes, it has a bigger impact because they spend more on energy as an overall proportion. To counteract this, more than one third of the funds raised by the increased carbon tax will be devoted to ensuring that the least well-off in society are protected from the increased carbon tax. We are doing this with two measures, including by increasing the fuel allowance by €2 per week which applies from 1 January and means an annual benefit of €56 which will leave the 22% of households which are in receipt of the fuel allowance better off after the carbon tax than they were before it in relation to fuel poverty. The Minister, Deputy Bruton, will increase funding to programmes such as the warmer homes initiative.

I will not be able to go through the measures in the time available, but people have asked what we will use the carbon tax revenue for. There are three categories. The first is the protection of the vulnerable through the fuel allowance and the energy poverty efficiency upgrades, which I have just outlined. Th second is a just transition fund which will allow for aggregated housing upgrade scheme, peatlands rehabilitation and the just transition fund. The third is investing in a low-carbon transition, which includes more greenways, more urban cycling, more continuation of electric vehicle grants, further investment in electric charging points and a commitment to our overseas development aid through the green climate fund. We have announced measures on mitigating.

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