Energy bills and cost of living
Deputy Doherty says households are being crushed by electricity and gas costs and urges energy credits and a broader cost-of-living package. The Tánaiste says the Government accepts energy prices are a real problem, is setting up reforms and supports, and argues Doherty is ignoring economic uncertainty and government action.
Níl dabht ar bith go bhfuil níos mó agus níos mó teaghlaigh ar fud an Stáit ag streachailt agus iad ag iarraidh íoc as billí leictreachais agus billí gáis. Ag an am céanna, tá an Rialtas ag caitheamh leis seo mar is go síleann sé go bhfuil géarchéim na gcostas maireachtála thart cheana féin. Tá sé ag diúltú pacáiste costas maireachtála a chur ar fáil i mbuiséad mhí Dheireadh Fómhair. Tá sé ag ullmhú chun na faoisimh fuinnimh atá ansin a bhaint de dhaoine agus iad ag brath go mór orthu. Tá sé sin scannalach.
Workers and families are being hammered by rip-off electricity and gas prices. Households have been hit with some of the highest energy costs in Europe, forking out far above what people in other countries are paying. Figures published this morning by the Commission for the Regulation of Utilities, CRU, lay bare the hard realities that folks face. The number of households in arrears on their electricity and gas bills has jumped by 70,000 in the past year. This means that over 300,000 households are behind on their electricity bills and over 175,000 are behind on their gas bills. The Tánaiste should let that sink in for a moment. Today, as the Dáil breaks up for the summer, hundreds of thousands of working families cannot meet the bills for heating and lighting their homes. That is disgraceful. Is it any wonder, particularly when we have seen their bills shoot up by hundreds of euro in recent years? Families simply cannot absorb this type of shock to their finances. Now, the Government's plan is to cancel the energy credits that they so desperately need and have relied on.
The Government has dug in and continues to refuse to agree to have a cost-of-living package in October's budget. Those on fixed incomes are at greater risk of poverty and need greater support. This ever-worsening cost-of-living crisis has widened significantly. More families and working people are struggling to get by. Even families with two incomes coming into the house find it harder than ever to keep up with the bills. The out-of-control prices that people are being forced to pay right across the board are pushing households to the brink. They can forget about keeping their heads above water. Many families are wondering how they stop sinking even further.
It is not lost on these families that as they are hammered by rip-off prices in respect of electricity and gas, energy companies are recording bumper profits. The ESB recorded operating profits of over €1 billion in 2023, with the figure for last year very close to that again. SSE Airtricity made hundreds of millions of euro in profits in the past two years. These companies are laughing all the way to the bank while working households are being taken for a ride.
These are the people the Tánaiste claims to understand. He told the Sunday Independent at the weekend that he understands what working families are going through and that he gets it. If he genuinely got it, he would understand that runaway electricity and gas bills are putting massive pressure on households. If he genuinely got it, he would do something about that. He would understand that the pressure is going to crank up even more in the autumn and winter when families are putting on their heat and lights earlier and leaving them on for longer.
The Government's plan to unplug energy credits in the budget will push more and more working families to the brink. How many more households have to go into arrears before it sees there is a need to act? There are 300,000 households unable to pay for their electricity and 175,000 unable to pay their gas bills. Does the Tánaiste really get it? The Government just cannot swan off for the summer break and leave people in the lurch with stress and uncertainty. It needs to introduce a cost-of-living package, continue with energy credits and tell workers and families that it will not cancel the help they rely on to pay these massive energy bills this autumn.
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I thank the Deputy for raising this issue. First, let us very clearly acknowledge that there is a real problem in this country when it comes to energy prices. The facts are clear in relation to that, which is why we called this out very clearly in our programme for Government and acknowledged the pressure increased energy costs place on households and, indeed, businesses. We are seeking ways to lower those prices while also accelerating the pace of the development of renewables. That is why we have established a new national energy affordability task force to look at the structural reforms we can undertake in this country to reduce the cost of energy and electricity. It is expected to come back with an interim plan to look at issues relating to energy efficiency upgrades, the social protection supports we have a place, CRU customer protection measures and further efforts we can provide to incentivise tariff switching with the savings that households and consumers can make in that regard.
I want people at home to know that we are taking measures in the here and now to assist them with the cost of living. Indeed, we are also taking measures in the here and now to specifically assist people with energy. Let me share details of some of those. The measures are being taken right now. For example, in the past week or so, over 221,000 children received the back-to-school clothing and footwear allowance. That is helping many of the households the Deputy referenced. From September every child who goes back to primary school or secondary school will receive free schoolbooks. That is helping households with the cost of living. General measures, such as every primary school child getting free hot school meals, reducing school transport fees and rolling out free GP care, all have an impact in assisting households with the cost of living in the here and now.
Specifically on energy, on coming to office, the Government took a rapid decision to extend the 9% VAT rate on gas and electricity. This was a real, practical measure to help people with gas and electricity bills. We put in place a 40% reduction in the renewable electricity public service obligation levy. That will also save people money on their electricity bills. We have significantly expanded the fuel allowance in order that thousands more people, particularly older people, will qualify. They will not have to wait for the budget. That will happen from September. From then, more people will receive the fuel allowance than ever before.
Compare that to the controversy we have seen with our nearest neighbours where they are talking about cutting fuel allowance payments. We are expanding them. For people who get into real difficulty, we have a social welfare system that also gives exceptional needs payments. I want people to know that. That is available for people who experience a particularly difficult bill as well. I know Deputies will know that through their offices. These are just a number of the measures we are taking in addition to reducing childcare costs, increasing student grants from September and increasing public sector pay, which will again increase on 1 August.
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Please do not paint a picture that nothing is happening to help people in the here and now.
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There is an air of unreality about Deputy Doherty's contribution today and many of the contributions we have had during this Leader's Questions slot over the last number of weeks. Being very honest with the people of Ireland, one would have to go back a long, long time to find a summer recess-----
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Being honest with the people of Ireland?
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Deputy Doherty probably does not need Deputy Hearne's help. One would have to go back a very long time to find a summer recess in which we have seen a moment of greater economic uncertainty, yet Deputy Doherty does not want to talk about trade, he does not want to talk about tariffs and he does not want to talk about the 48,000 people who work in pharma in this country. He does not want to talk about global uncertainty. He has never seen something he does not want to spend more money on but we have to be honest with the Irish people. We cannot keep saying "spend, spend, spend". The Deputy talked about working people and working families. Does he know what I am going to do? Make sure they can keep working-----
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-----by protecting their jobs at this dangerous moment. We will support families but we will also support the economy, something the Deputy does not like talking about very often.
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At least we can put that debate to bed; the Tánaiste does not get it. He simply does not get it. The Tánaiste stood there and the unreality-----
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I hope we do not get it if it is what the Deputy is saying.
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The facts are staring the Tánaiste in the face. He talked about what the Government was doing in terms of energy. Did he not see what the commission released today? Does he know how many people are going into further debt or cannot pay their energy bills since January of this year? In four months, it has increased by 63,000 households. That is since this Government came into office. This means that, for the first time, we have 300,000 households that cannot pay their electricity bills and 175,000 that cannot pay to heat their homes with gas. The Tánaiste stands there as if he gets it. He does not.
There needs to be a cost-of-living package in this year's budget. The Government needs to introduce energy credits. What the Tánaiste has said here and the signal he has sent to those families who, under this and the previous Governments, cannot pay their bills is that they are on their own.
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Energy credits have to be delivered in this year's budget. Otherwise, that is the message the Tánaiste is sending people. There needs to be a cost-of-living package. Yes, we understand there is instability but there was also instability in the last number of years. We have a surplus at this point in time and the Government is happier to provide €186,000 to landlords as a tax credit than actually support people to heat their homes and keep the lights on.
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The Government has all the wrong priorities. It should introduce a cost-of-living package-----
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-----because what is happening under its watch is nothing but scandalous.
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I presume I will get the few extra seconds, too. If the Deputy genuinely believes that the economic challenge facing our country this summer is the equivalent to moments of economic challenge over the last couple of summers, I really worry for his level of economic literacy. If he genuinely thinks-----
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-----that this situation with tariffs, trade, pharma and global uncertainty is the same as it was last summer, come on. He is better than that.
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Is the Tánaiste suggesting the pandemic was not an issue?
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Deputy Doherty spends a lot of his political career standing up and saying the Government does not get it, it does not understand, it is out of touch. Does the Deputy know what I know? I know who owns SuperValu.
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The Tánaiste did not know how many Covids there had been, though, did he?
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Its profits went up 39% in the last four years. Its profits went up.
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-----towns and villages across the country. It is a proud Irish company. The Deputy thought it was owned by an American multinational and he wants Paschal Donohoe's job? He wants Paschal Donohoe's job and he does not even know who owns SuperValu or cannot even use Google? Give me a break.
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Its profits went up 39%. The Tánaiste did nothing about it. He did nothing about it because he has no answer.
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Give me a break. Does the Deputy know who had the answer? ChatGPT. Paschal Donohoe or Pearse Doherty - we know who we want running the finances.
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The Tánaiste has no answer. Pathetic.
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People looking in on this debate today will have their heads in their hands.
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They are worried about putting food on their tables and turning their lights on. We have this kind of behaviour going on. I do not think either of the Deputies gets it, to be honest.
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There are economic clouds on the horizon and there is a growing sense of worry about what the future holds. Coupled with that is a lot of frustration with the Government's moralising about this budget. Having splashed the cash in an attempt to buy votes last year, its message has suddenly changed. Now that an election is no longer on the cards, one-off payments are a bad idea. The Social Democrats told the Government that last year. We told it to invest in sustainable measures that would assist people and their long-term futures. We told it to target the measures and target supports for people. It ignored us. It proceeded with a giveaway budget that was a cynical piece of electioneering. Fine Gael likes to style itself as a party of fiscal probity, giving lectures to the public about the importance of counting pennies, but the reality is it has been throwing public money around like snuff at a wake. The Government's spending in a few short years has increased by nearly 50%. In 2020, it cost €70 billion to run the country. We have gone from spending €70 billion to nearly €110 billion this year, €40 billion more in the budget. What do we have to show for it? We have a housing crisis that is spiralling out of control. We have record homelessness. We have disability services that are threadbare. We have soaring levels of child poverty. We have a cost-of-living crisis that is escalating and we have energy and water infrastructure that is crumbling.
The reality is this Government is an epic waster. It has wasted time, opportunity and a generational opportunity to invest in a better future. It has wasted our money. That is why people feel so let down. They feel disillusioned. They listen to the Government pat itself on the back for its prudent financial management while they struggle with the very basics. They struggle to keep a roof over their heads, their electricity on and food on their tables. The public services they need are just not there for them.
I ask the Tánaiste to please spare us his lectures about careful budgetary planning. The reality is this Government has been reckless and feckless. It talks about the importance of infrastructure as if that has suddenly dawned on it. While Uisce Éireann warns it will run out of capacity for new homes in Dublin in three years' time, we are on course to have zero off-shore wind generation by 2030 and our electricity grid is on the verge of collapse.
Fine Gael has been in government for 14 years. I know the Tánaiste will probably stand up and try to blame the Opposition for his problems and mistakes because that seems to be the status quo. When will the Tánaiste take responsibility and what will he do in the budget that will actually make a real difference for people?
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I do not blame the Opposition for any of the challenges the country faces. I just blame it for its hypocrisy. The Deputy gave out there about the one-off payments. Last year, I asked her interim leader to name one of them he did not want. I will ask Deputy Whitmore the same as well. Is it the parents in Greystones and Delgany who should not have got a double child benefit payment? Did the Deputy not want that? Did she not want the one-off additional payments to the pensioners in County Wicklow? None of the Deputies had the courage to tell me last year which of the one-off payments he or she did not think people wanted.
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I offer Deputy Whitmore that chance again. Tell me which one-off payment in the social welfare code last year she is against and that the Social Democrats do not want. Was it the child benefit payment? Was it the carer's payment? Was it the fuel allowance? Just let us know because the Social Democrats would not last year. They were happy to vote in favour of them all and their offices were happy to assist people in getting information on all of them as well.
We have this thing about a united Opposition going on - or at least, I think we did. It cannot yet agree on a presidential candidate, so that is test No. 1. Now, it cannot agree on crucial budgetary matters either.
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We are doing a party solution.
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It is different, okay. There is talk of a united Opposition. They are all out there on the plinth-----
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Sorry, the way this works is I am asked a question and I get a chance to answer, please. A united Opposition-----
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We all know our roles. That is useful. The main Opposition party has asked for universal one-off measures. The Social Democrats have asked us not to do that and to do targeted measures. I am telling the House that this Government will deliver a budget in October. We will set out the parameters of that budget in the summer economic statement, which I expect to be published next week. There will then be an opportunity to debate how best to get the composition of that right. I agree with Deputy Whitmore on this. We need to invest in key areas of infrastructure. She is right about the challenges that Uisce Éireann faces. She is right about the enabling infrastructure.
Deputies will see from Government in the revised national development plan next week a very significant increase in capital investment. It will enable a significant upward shift in investment in water, energy, housing and areas under pressure from a supply point of view like childcare and disability services. It is not about giving anybody a lecture on fiscal prudence. It is about saying thank God we are approaching this moment of economic instability with full employment, surpluses and, effectively, rainy-day funds. We have stood up in this House many times and people - not Deputy Whitmore, in fairness - have criticised my party and the Government for setting money aside for economic rainy days. That is looking like a better decision by the day. I agree we need targeted investments in infrastructure. The one-off measures served an important purpose at a time of extraordinarily high inflation but we made it very clear to the people in the election that, if returned to government, we were getting back to one budget each year and there would be space and capacity in that budget to make progress on many issues the Deputy and others would like to see progress on.
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In response to the Tánaiste's question, the Social Democrats would absolutely not have spent over €100 million on energy credits for holiday homes. We repeatedly said that. I do not know how anyone could justify that payment. The Tánaiste talks about Wicklow. I will tell him what people and families in Wicklow want. They want the same as families all over the country. They want to know their children, when they grow up, will have a home they can afford. They want to know if they have elderly parents and those parents need hospital care, there will be a bed available for them. They want to know that if their children have disabilities, there will be services and supports provided to them. They want to know the Government, the State and public services are sufficient and will meet their needs. The reality is that does not happen. Ireland is a wealthy country, yet so many pieces of our infrastructure and public sector just do not work. Where has all that money gone? Where has the Government invested it? We have never had as much money come into this country as over the past 14 years and we have very little to show for it.
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I do not agree with that analysis at all. Absolutely, we have seen a significant increase in public spending and that has provided record numbers of new school places, record numbers of special schools and record numbers of-----
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-----people working in our public services. It has provided record levels of investment in the public service and the things Deputy Whitmore talked about.
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There are 120 children in Wicklow town who do not have a primary school place for September.
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There is a constant attempt to interrupt. We had it the first time I answered the question and are having it the second time. I am trying to answer the question. I have one minute available. We are investing in public services and have put that money to good use. It is seen in communities across the length and breadth of our country. I have stood beside the Deputy at many a ribbon-cutting in County Wicklow where that money has gone.
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In constituencies across the country, we have seen the benefit: new schools, Garda stations, new healthcare facilities, primary care services, expanded public transport. We have invested lots of money but we have more to do, including getting to 300,000 more homes; investing in our health, particularly infrastructure around elective hospitals; and access to therapy services. The decision my ministerial colleague, Deputy McEntee, has taken to set up a new national education therapy service will be transformational. The national development plan next week will show the people of Ireland the measures we intend to take to keep our country safe and to invest in our competitiveness and in key infrastructure.