€280 Fuel Allowance payment hike in Budget 2027 latest for 470k Irish in ‘restore purchasing power’ call after €152 move
SOME 470,000 households across Ireland are set to receive their first Fuel Allowance payment of the season on September 28.
Tanaiste Simon Harris has already hinted that the cash, currently paid at a weekly rate of €38 or in two €532 lump sum instalments, could be expanded to more people as part of Budget 2027.
He said there is an “argument” for expanding eligibility for the payment designed to help with the cost of heating homes in the winter months, describing it as “the most impactful way we can assist people who are on low incomes and who are at risk of fuel poverty”.
And Sinn Fein TD Shónagh Ní Raghallaigh has now asked the Minister for Social Protection if he will consider increasing the weekly payment from €38 to €42.
She said Budget 2027 should also allow the State to retain the 32-week Fuel Allowance season that was introduced earlier this year in the wake of the fuel protests.
Raghallaigh said this four-week extension alongside the €4 weekly increase would “restore the purchasing power of the payment to its 2020 level and provide greater certainty to households”.
The two changes would increase the worth of the Fuel Allowance payment from €1,064 to €1,344, marking an increase of €280.
Social Protection Minister Dara Calleary said the Government is committed to protecting vulnerable households from the impact of energy costs through a “combination of financial supports, energy awareness initiatives and investment in programmes” to improve energy efficiency.
He said: “As part of the Government’s €250m targeted supports in March this year I was delighted to announce the extension of the 2025/26 Fuel Allowance season, by four weeks.
“The additional four weeks Fuel Allowance payment provided an additional €152 to households.”
But the Fianna Fail TD said any further changes to the Fuel Allowance scheme will be decided as part of the overall Budget 2027 package, which is due to be announced on October 6.
He explained: “Any further changes to the Fuel Allowance scheme such as permanently extending the period it is paid for or increasing the weekly rate would require additional funding for the scheme and therefore any decision to increase the Fuel Allowance thresholds would have to form part of overall budgetary negotiations.”
He estimated that expanding the Fuel Allowance season by four weeks at a rate of €42 to the around 470,000 eligible households would cost the State an additional €78.6m.
Meanwhile, on Wednesday, Taoiseach Micheal Martin said the Government is “conscious” of the global impacts on fuel and on energy prices, and is looking at everything in the round.
He said: “We have more or less focused in on the idea of decoupling that kerosene issue and making sure that we give alleviation to people in their homes, in particular home heating, over the winter period.
“We’ve looked at the figures in terms of the impact that’s particularly significant there. And yes, we are looking at doing something there.”
In May, the number of households in arrears on their energy bills hit its highest level since the regulator started gathering data nine years ago.
And earlier this month, the Commission for the Regulation of Utilities confirmed a total of 323,559 people – one in seven households – were in arrears on their electricity bills in the three months to July.
The average value of a domestic electricity account in arrears is €509.
Just under 188,000 residential gas customers – more than one in four – are behind on their bills by an average value of €206.
The grim figures came after multiple energy suppliers confirmed hikes to their prices coming into the winter months.
Yuno Energy, Electric Ireland, Flogas, SSE Airtricity and PrepayPower all hiked prices for gas, electricity, or both, over the summer.
Pinergy planned price hikes of €169 to the typical household bill over a year from September 14.
And further increases are expected for Bord Gais and Energia customers in early October.
