Dáil Éireann Debate, Tuesday - 20 October 2020
139. Deputy Jennifer Whitmore asked the Minister for Environment, Climate and Communications if his Department has finalised the energy poverty report; when the report will be published and made available; and if he will make a statement on the matter. [30990/20]
View answerThe Programme for Government commits to increasing the carbon tax by the amount of €7.50 per tonne per annum to reach €100 per tonne by 2030, and to using a portion of the additional revenue generated to provide targeted social welfare increases and other initiatives to prevent fuel poverty amongst low-income families.
My Department is undertaking a programme of work with the Economic and Social Research Institute (ESRI) to examine the distributional benefits of utilising carbon tax receipts, including the impact of retrofitting on alleviating fuel poverty. As part of this programme of work, and on foot of a specific commitment in the Programme for Government, the ESRI published a report, 'Carbon taxes, poverty and compensation options,' on 13 October. The report identified a series of targeted direct social protection payment interventions and examined the effect of each on the incomes of lower income families. In addition to raising the level of carbon tax by €7.50 per tonne, the Government has committed, in Budget 2021, to significant increases in a targeted package of social protection supports. These supports were selected to address the impact of the increased carbon tax, as identified by the ESRI. The specific measures are:
- an increase to the Qualified Child Payment of €2 per week for children under 12, and €5 per week for children over 12;
- an increase in the Living Alone Allowance of €5 per week; and
- an increase to the Fuel Allowance of €3.50 per week.
The total cost of these interventions is expected to reach an estimated €153.5m in 2021. This will be part-funded by receipts from the increased carbon tax of €48m, with the remaining €105.5m cost to be funded by general Exchequer receipts.
Further information on these is measures is available on www.budget.gov.ie.
