Press release
Major package of supports to protect families, households, and businesses in Budget 2023
From Department of the Environment, Climate and Communications
Published on
Last updated on
From Department of the Environment, Climate and Communications
Published on
Last updated on
The large increase in energy prices, driven by the war in Ukraine, is having a significant impact on families, households and businesses across the country. This department’s work has been central in designing a major all-of-government package to address rising energy bills as part of Budget 2023.
An enhanced electricity credit of €600 will be applied to electricity bills, €200 before Christmas and the remainder (in two tranches) early in the New Year. This will benefit all Irish households, with a total value of €1.3 billion. This credit will be supplemented by a suite of targeted cross-government measures aimed at protecting those most at risk of fuel poverty. These measures are informed by work undertaken by the department. For example, revisions to eligibility criteria will see more families and households receive the Fuel Allowance, as well as significant lump sum payments.
The department is acutely aware of the importance of protecting jobs, in order to protect families, during this energy crisis and this has been key in the design of the new Temporary Business Energy Support Scheme (TBESS), which will provide up to €10,000 per business per month until spring 2023 – to help meet rising energy costs. The scheme will support eligible companies, covering 40% of the increase in their energy bills.
Over €1 billion is allocated in Budget 2023 to the department to deliver a climate-neutral, sustainable and digitally-connected Ireland. In line with the Programme for Government, funding is prioritised for the National Broadband Plan, energy transformation, protecting our environment and the transition to a Circular Economy. The 2023 Budget allocation has also been informed by the forthcoming Climate Action Plan 2022 and the Sectoral Emission Ceilings.
Significant funding of just over half a billion Euro will go toward energy transformation, including the national retrofitting and home energy upgrade programmes, which provide supports including 80% grants for cavity wall and attic insulation and free upgrades for households in energy poverty. €291 million of this allocation will be funded from carbon tax revenues. Carbon tax revenues will also go towards an enhanced Fuel Allowance scheme. Next year, there will be record funding allocations for retrofitting, but also for the installation of solar panels for homes, businesses, community organisations and every school in the country, helping to protect them against energy cost increases into the future, while also reducing our emissions.
Commenting on Budget 2023, the Minister for the Environment, Climate and Communications, Eamon Ryan, said:
"I know that families and businesses are struggling with the rising cost of living as a result of Russia’s invasion of Ukraine. This is a budget that is first and foremost about protecting people and businesses. It is also a progressive budget, because it ensures that households that are least able to cope with the unprecedented energy increases will be given the greatest supports. This has been made possible because of careful analysis and planning which means that we provide relief for people – in a financially sustainable way.
"We cannot, unfortunately, insulate people completely from the cost impact of Russia’s war, but I believe the combined package, including energy credits, targeted social welfare measures, business supports, and a ramped up retrofitting programme to 37,000 homes in 2023, are the right and equitable measures that we can take right now. In addition, I will be working with my colleagues at an EU level with regard to market realignment and the progression of mechanisms to recycle excess energy profits back to hard-pressed consumers.
"While this budget is about helping people right now, it also provides the funding to protect our environment and progress our long-term goal of a climate-neutral, sustainable and digitally-connected Ireland. The real lasting solution to this fossil fuel crisis, which is causing so much hardship for people, is to scale up and speed up our transition to renewable energy systems. This budget shows that this government remains 100% committed to this ambition."
Minister of State with responsibility for Postal Policy and Eircodes, Hildegarde Naughton, said:
"Budget 2023 includes €10 million to strengthen Ireland’s post office network. As Minister, I am acutely aware of the importance of supporting our 900-strong post office network which play a vital role in community life.
"This funding will give postmasters certainty and stability, allowing them to plan and develop their services. This is part of a €30 million, three-year funding package that recognises the central role played by postmasters in our communities, and ensures that families and businesses can continue to access public services close to where they live and work."
Minister of State with responsibility for Communications and Circular Economy, Ossian Smyth, said:
"The additional funding for connectivity and communications will enable us to continue the roll-out of high-speed broadband to every home in the country, and to strengthen our defences against serious national cyber incidents. In 2023, we will also provide dedicated funding for a range of initiatives, as part of our broader transition to a Circular Economy."
Budget 2023 includes €10 million to support a sustainable, nationwide post office network. This is part of a €30 million, 3-year funding package. Through this measure, the government recognises the importance of a high-value and high-quality post office network to citizens throughout Ireland, as well as the central and trusted role of postmasters in our communities. This is a significant development, whereby the government is now providing direct financial support to postmasters who operate much of our post office network.
*Refers to an increase on the original 2022 allocation.
** Refers to an increase on the revised Budget 2022 allocation (as per the December 2022 revision).
ENDS
The nationwide ##ReduceYourUse public information campaign promotes and encourages energy efficiency, while highlighting the range of government supports that are available for households and businesses to assist with rising energy costs.
The campaign will be phased, tailored for different seasons, activities and energy demands. It will highlight how war and conflicts are affecting energy costs across Europe and how, now, more than ever, we need to be mindful of how we use energy in our daily lives. The campaign encourages people to reduce their energy cost by reducing their energy use and encourages long-term sustainable behaviour.
Energy efficiency advice within the campaign is provided by experts at the Sustainable Energy Authority of Ireland (SEAI). It is practical and evidenced-based, detailing what actions can help to save the most money and energy.