Green Party leader Roderic O’Gorman has said he is ‘worried’ that the Government will not have enough money to fund SEAI grants at their current levels next year.
As part of a package of measures to ease the cost of living during the Iran War, an increase in the carbon tax was delayed from May until October.
The tax is levied at €71 per tonne of CO₂ emissions on fossil fuels - such as home heating oil, peat and coal; the funds raised from the tax are ringfenced and used to fund the Fuel Allowance and SEAI grants.
However, two weeks ago, Jack Chambers said “no decision” has yet been taken about whether the levy should be increased in Budget 2027.
On Newstalk Breakfast, Roderic O’Gorman said he has encountered “real concern” among his Dublin West constituents about energy costs.
He called on the Government to help people with the “immediate impact of inflation” but also to engage in long-term planning that will bring down bills in the future.
“Take steps to protect households from the next spike in the price of fuel,” he urged.
“As you know, we've seen two now in the last four years, both driven by the fact that Ireland is overly dependent on fossil fuels.
“That is the central reason why households are seeing these fuel price increases; it's not the carbon tax - it's because too much of our energy still comes from fossil fuels.
“The carbon tax is the one part of our entire taxation system, which is trying to help us break away from that dependence on fossil fuels and I think it's the wrong part to be targeting right now.”
Deputy O’Gorman added that the Government should consider re-introducing energy credits again but in a “targeted way”.
“We propose that there should be a fossil fuel inflation fund to provide for these energy credits to give that short-term relief to families,” he said.
“But also pay for those long-term changes to families' energy systems, more retrofits, allow people change, move away from oil, allow the installation of solar panels.”
Solar panels on a roof. Picture by: Pexels.com.Deputy O’Gorman continued that there was a “huge increase” in the amount available in SEAI grants while the Green Party was in power and they have proved very popular with homeowners.
“After the war in Iran broke out in February of this year, the SEAI saw a 96% increase in people applying for these grants,” he said.
“I do have a worry though that I'm not sure if the Government is fully funded to provide all those extra grant applications in 2026.
“Remember, if there's a deferral to the carbon tax, it means less money in 2027, fewer homes insulated, fewer solar panels installed, less money for increases in the fuel allowance.
“And it's not just me saying that, that's what Jack Chambers said two weeks ago.”
The Department of Energy has been contacted for comment.
Main image: Green Party leader Roderic O'Gorman. Picture by: Sasko Lazarov/RollingNews.
