Regina Doherty (Meath East, Fine Gael) | Oireachtas source

The specific cost to households of the increase in carbon tax would vary depending on a number of factors, notably, the energy efficiency of the homes of the fuel allowance recipients and the amount and type of fuel they use, among other factors.

Last year, the ESRI published its report on the economic and environmental impacts of increasing the Irish carbon tax. The report indicated that the additional cost of the carbon tax would be less than the weekly net value of the fuel allowance increases for those households living in the four lowest percentiles. The reason for the increase we chose was to protect the very people who are on the fuel allowance. The ESRI report stated that households in the lowest four percentiles will have an expected increase in fuel costs of €45 per annum in 2020. The increase in the fuel allowance by €2 per week amounts to approximately €56, which means there is some headroom should anything happen in the coming year. However, that is not the totality of what the Government is doing. Although one quarter of the €90 million that is expected to be ring-fenced from the carbon tax increases next year will go directly to supplement the people in the lowest four percentiles, many other initiatives such as the better energy warmer homes scheme will be rolled out across the country.

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