Micheál Martin has promised that cuts to the carbon tax will not mean a reduction in SEAI grants and that the Government remains committed to retrofitting.  

Revenue from the carbon tax is ringfenced for measures to combat fuel poverty and reduce CO₂ emissions, such as retrofitting. 

However, in Budget 2027, Tánaiste and Minister for Finance Simon Harris announced a cut in the carbon tax on kerosene and natural gas to €48.50 per tonne. 

The carbon tax on both items had been due to increase to €78.50 per tonne by 1st May, but instead Minister Harris promised he would not increase the tax “in the lifetime of the Government”. 

“The decision not to proceed with future increases on these products will ultimately result in the carbon tax rate being less than half of what was set out originally,” the Fine Gael leader told TDs. 

This is a Budget for families, for workers and helping people with rising costs.

- We're putting more money back in workers’ pockets
- Supporting families and carers with the cost of childcare and disability
- Easing the burden of fuel and energy costs for those who need it most https://t.co/Cj4UGysE5V

— Micheál Martin (@MichealMartinTD) October 6, 2026

There had been speculation that a cut in the carbon tax would mean a commensurate cut in the amount allocated to SEAI grants for retrofitting. 

However, amid surging exchequer returns, there was still enough cash for Minister for Public Expenditure Jack Chambers to allocate a record capital allocation of €654.5 million to the SEAI. 

On The Claire Byrne Show, Taoiseach Micheál Martin said the Government remains committed to helping people retrofit their homes. 

“We have people out there who won't be changing their boilers anytime soon,” he said. 

“Let's be honest about it, there's a bit of realism behind what the Government is doing here. 

“But we're driving ahead with retrofit, with solar and the results are good.

“There's over 290,000 households [that] have been retrofitted now since we started investing in this over the last five years in a very significant way - which shows you that it's working.” 

Workers installing solar panels on a roof in Ardara, County Donegal. Picture by: Alamy.com.

Mr Martin added that the SEAI has also expanded the number of grants available in recent months, with homeowners now subsidised if they install new windows, doors and solar batteries. 

“We weren't waiting for the budget in terms of retrofitting,” he said. 

“There were over 100,000 applications; so, [Minister O’Brien] is having an impact because I think he's made it more practical for people to access.

“The criticisms we had over the last four years is that those grants were difficult to access, particularly for people on lower incomes.”

The Government has set itself a target of retrofitting 500,000 homes to a BER B2 standard by 2030.

Main image: Micheál Martin. Picture by: Alamy.com.