Pauline Tully (Cavan-Monaghan, Sinn Fein)
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117. To ask the Minister for Communications, Climate Action and Environment the actions he is taking to ensure carers and disabled persons are not adversely affected due to the introduction of the carbon tax, especially considering the findings of a report (details supplied); and if he will make a statement on the matter. [10488/22]

Eamon Ryan (Dublin Bay South, Green Party)
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In 2020 my Department, in conjunction with the Departments of Public Expenditure and Reform; Social Protection; Children, Equality, Disability, Integration and Youth; and Finance commissioned the Economic and Social Research Institute (ESRI) to carry out research into how the rate of carbon tax could be increased without disproportionately affecting low income households. The ESRI's research report concluded that using the revenue generated by the increase in carbon tax to support a series of socially progressive, targeted interventions will leave low income households, such as those where there is a person with a disability, with more disposable income than had those interventions not been implemented.

The increase in the carbon tax, and the redistribution of revenue in a fair and equitable manner, was one of the key measures set out in the Programme for Government. The findings of the ESRI report were taken into consideration by policy makers when preparing Budget 2021 and Budget 2022. In both of those budgets, this Government announced increases to the carbon tax along with a series of initiatives aimed at assisting low-income households address the increase in energy prices. The initiatives announced included targeted social welfare increases, as well as financial support for a socially progressive residential retrofit programme. Modelling carried out by the ESRI indicated that these measures would result in an increase in disposable income for households in the first five income deciles. It should be noted that the increase in carbon tax in Budget 2022 will not apply to home heating fuels until May 2022.

Earlier this month Government approved a package of supports aimed at making it easier and more affordable for homeowners to carry out energy upgrade work on their homes.  Included in the package are measures targeted at low-income households, including funding for a Local Authority Retrofit Programme and the Better Energy Warmer Homes Scheme that will deliver a range of energy efficiency measures free of charge to low income households.  Households in receipt of both the Domiciliary Care Allowance and the Carer’s Allowance, where the carer lives with the person they are caring for, are eligible for the Better Energy Warmer Homes Scheme.  The scheme was also extended to include persons in receipt of the Disability Allowance for over 6 months and have a child under 7 years old.  These criteria will be kept under ongoing review by the Department of Social Protection.