Next €200 energy credit is rolled out as €1bn welfare package comes into effect

Over €1 billion worth of social protection changes will come into effect from next week as the cost-of-living crisis continues to put people under financial pressure.

Under a separate measure to help people meet rising bills, the next €200 electricity credit will be applied from Sunday. However, depending on a household’s individual billing cycle, some people may not see the credit until February.

The social welfare changes, secured as part of Budget 2023, provide a range of supports for pensioners, carers, people with disabilities and low-income families.

From January 1st, there will be a €12 increase in the maximum rate of all core weekly payments, which is the largest increase in over a decade and will benefit more than 1.5 million people, Minister for Social Protection Heather Humphreys said.

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The fuel-allowance scheme will be extended, and there will be a €40 a week increase in working family payment thresholds.

Furthermore, there will be a €25-a-week increase in earnings disregards for people with disabilities, as well as a €20.50 increase in the monthly rate of domiciliary care allowance

There will be a €2 increase in payments in respect of children of social welfare recipients, bringing the payment to €42 a week for children under 12 and €50 a week for children aged 12 and over. There will also be an increase in earnings attracting the lower employer PRSI rate, in line with the increase in the national minimum wage.

Speaking about the measures, Ms Humphreys said the changes will benefit “hundreds of thousands of households and families right across the country, including our carers, pensioners, lone parents and people with disabilities”.

She added: “As a result of this increase, over 1.5 million people are set to receive more money into their accounts this week. This is the largest increase in weekly payments for over a decade.”

The energy credit being issued from Sunday is the second of three €200 lump sums announced in the budget, in a bid to assist households with the rising cost of energy.

The first €200 credit was applied before Christmas, while the third tranche will apply in the March/April billing cycle. This €600 intervention, costing more than €1.2 billion, followed an additional €200 electricity credit paid out earlier in 2022.

Consumers using pay-as-you-go services will also be able to benefit from the scheme.

The move is part of a broader €4.1 billion package of one-off measures to support households and businesses right across the country in the midst of high energy prices, as a result of Russia’s invasion of Ukraine.

Minister for the Environment Eamon Ryan said the Government is “acutely aware” of the impact of rising inflation.

“We know that everyone is working as hard as they can for their families and households, and that rising costs are making it ever-more expensive to do the weekly shop, to fill the car and pay the bills – especially as we face into the new year,” he said.

“The ESRI has found that the one-off measures we brought in, as part of Budget 2023, are insulating most households from rising prices this winter. Across Government and across our State agencies, we will continue to closely monitor the situation.”