Tomorrow is an important day that will provide a serious test for the Government. More than 1 million households will be hit with hikes in gas and electricity prices. Customers of Electric Ireland, the country's largest electricity supplier, and Yuno Energy face increased bills. These sharp increases range from 8% to 11% and will heap more pressure on people. The hikes will kick in as households deal with rising rents, increasing food prices and expensive back-to-school costs. That is before we mention the sky-high cost of car insurance and childcare. The bills keep coming. They keep going up and up, and people are fed up with being ripped off.

I want to remind the Taoiseach of something, which is that Irish households already pay the highest electricity prices in the European Union. On average, we pay more than €500 more per year than our European neighbours. As the Taoiseach knows, we already have record numbers of people who are unable to pay their energy bills, with more than 500,000 household accounts in arrears. That is the context and the backdrop. That is what families are facing as these new hikes come at them tomorrow. The hikes will hit hard-working families. These are people who work every hour they can and who do everything they can to build a good life for themselves and their families. No matter what they do, however, there seems to be a constant uphill battle and a constant rip-off. These are the families that are squeezed and squeezed.

Here is the worst of it. The Government has known these hikes were coming for weeks, because the increases were announced at the end of May. It has had more than a month to act and to step in to protect people, but, true to form, it has done nothing at all. Energy has to be affordable for people. We need to get costs under control and end the rip-off. We have to support people while costs are so high. The Taoiseach should rein in the energy companies, which are making massive profits. He should see to it that energy credits are reinstated, because his job is to take action to ease the pressure on people and families. Why is the Government allowing this scandalous profiteering to go unchecked. Why is it content to sit back and allow more than 1 million households to take the hit? The uncertainty, stress and pressure people are being asked to live with is not right and is not fair. People deserve better.

Ón lá amárach, beidh billí leictreachais agus gáis ag méadú go géar do níos mó ná 1 milliún teaghlach. Cuirfidh sé níos mó brú ar theaghlaigh atá ag streachailt go dona cheana féin. Cad atá an Rialtas chun a dhéanamh faoi seo?

This comes down to choices. The Government should choose to step up, have the backs of households faced with these energy price hikes and take action to rein in the energy companies. It should provide people with the support they need here and now. That means intervening directly and providing the energy credits that households need. Will the Government make these choices?

I dtús báire, admhaím go bhfuil deacrachtaí ann agus go bhfuil teaghlaigh faoi bhrú maidir leis an gcostas maireachtála, go háirithe de dheasca an chogaidh san Iaráin. Is léir go raibh drochthionchar ag an gcogadh sin ar phraghsanna. Tá sé sin soiléir. Tá an-chuid déanta ag an Rialtas, áfach, chun an brú sin a ísliú agus chun cabhair agus tacaíocht a thabhairt do dhaoine. Faoi dheireadh na bliana, beidh suas le €1 billiún níos mó curtha ar fáil againn do mhuintir na tíre i gcomparáid leis an méid a chuireamar ar fáil i gcomhthéacs na cáinaisnéise is déanaí i mí Dheireadh Fómhair seo caite.

Families have been under pressure in respect of the cost-of-living issue. The latter has been exacerbated by significant events in recent years, not least the exit from Covid, the supply chain inflationary crisis and the spiral that followed that, the invasion of Ukraine by Russia and the energy that followed that, the tariff situation relating to the United States and the war in the Middle East between the United States and Iran, which led to the largest ever supply shock in terms of fuel and to consequential increases in fuel prices.

In the first instance, budget 2026 provided a lot of significant supports. First, we had the increase in the core rates. We also had the significant increases in child support payments, which helped families that have children and that are on the lowest incomes. Record allocations were made in respect of those payments, including, for example to the fuel allowance. What was done meant that a lone-parent family with one child saw an increase of nearly 9% or €1,800 in payments from the Department as a result of our budgetary decisions. A two-adult household received increases in payments of up to €2,300 as a result of those decisions. Other measures we took include free hot school meals and free schoolbooks in primary schools. We took a lot of charges out of the health service to facilitate families in particular. These measures were all with a view to helping families deal with the crisis. We reduced VAT and have kept the VAT on electricity charges down to 9%. That will continue out to 2030.

Deputy McDonald said we did nothing. We introduced a special package of between €755 million and €771 million at that stage in order to alleviate the pressures on people and on the transport and food production sectors. We took 32 cent off the price of diesel, 27 cent off petrol and 7.4% off marked gas oil. We also deferred the carbon tax increases until 14 October.

These are substantial measures. We have now taken a decision to extend those and to reduce them on a graduated basis. The cost of that will be about €255 million, so we are looking now at an intervention, above and beyond what was in the budget, of close to €1 billion. That is not doing nothing. That is a significant intervention by any yardstick – probably one of the highest across the European Union. We want to introduce further measures in the forthcoming budget that will alleviate the pressures on families and on workers, particularly in terms of the tax burden on them. We also want to support pensioners, carers and those with disabilities. We want to use our resources in a focused and targeted way in the budget, which we will do.

Hear, hear.

It is not enough simply to agree that households are under incredible pressure. Far from intervening to assist people with their energy bills, the Government took away the very thing that was a support to households when it removed energy credits.

Rather than intervening to assist, it intervened and made things worse. It has failed to rein in the energy companies that are turning huge profits. People work very hard and will pay their way, and everybody realises that this has to happen, but they are simply fed up with being constantly ripped off. They ask themselves why everything here is so much more expensive and why this is the case. Why is it that Irish households and families consistently have to pay more for their energy? I am putting the question to the Taoiseach today that more than 1 million households will be asking themselves tomorrow when they face yet another hike in their electricity and gas prices and bills. They will ask what the Government is doing to put a stop to the gallop of the energy companies. What is the Government doing to step in and assist these households as they struggle, as the Taoiseach has acknowledged?

The energy companies were quite quick to put up the prices at the time of the issues in the commodity markets arising from the war between the US and Iran. We will have to see comparable decreases as commodity prices reduce and as this feeds into the Irish market. We have had significant reduction in terms of energy prices but they need to go much further than they have. We have nominally the highest EU electricity prices and about the fifth highest when adjusted for affordability. We have a heavy gas dependency. This is a significant factor in the pricing of our energy. We have grid isolation and small market scales. The fundamental problem we have is an over-reliance on fossil fuels, and on gas as our source, and we need to move more decisively to renewables. Through the warmer home schemes and retrofitting schemes, we are empowering people to deal more effectively on a long-term basis with the costs.