Government failing PAYE workers in energy crisis – Bacik

Labour Leader Ivana Bacik TD today challenged the Taoiseach in the Dáil over the Government’s failure to support working households facing spiralling energy costs, warning that hundreds of thousands of PAYE workers are being left behind in the deepening cost-of-living crisis.

Deputy Bacik said:

“Families and workers across the country are under sustained pressure, struggling to keep up with rising electricity and gas bills, soaring grocery prices, and increasing rents and mortgage costs. For many, the reality is stark: people do not know how they are going to pay their bills. Over 320,000 households are now in electricity arrears and a further 180,000 in gas arrears, the highest levels ever recorded. This is a clear signal that the current approach from this Government is inadequate and deeply damaging.

“This Government has withdrawn the very supports that helped households weather previous energy shocks. Energy credits and reduced VAT rates brought some relief, yet these have not been replaced with any meaningful targeted support. Instead, we have seen limited and untargeted measures, alongside tax decisions that have failed to prioritise ordinary workers. The refusal to index income tax bands, despite repeated calls from Labour, has further squeezed PAYE workers, while progress on the living wage and statutory sick pay has been delayed.

“Taoiseach’s response in the Dáil today was deeply disappointing. He failed to engage with the substance of the issue facing households, instead attempting to rewrite Government formation talks from over a year ago. Rather than addressing the urgent reality facing families, he side-stepped the scale of the crisis and failed to set out any clear plan to support those in arrears or at risk of disconnection. At a time when the ESRI has confirmed that Ireland has the highest energy prices in Europe, this lack of urgency is unacceptable.

“There are practical and evidence-based measures available to Government. Labour has set out fully costed proposals for targeted, income-linked energy credits to support those most exposed. We have also called for the extension of the moratorium on energy disconnections, which ended in April, and for the development of a national fuel security plan, in line with guidance from the International Energy Agency. In addition, measures to reduce energy demand, including expanded remote work options and investment in public transport and renewable energy, are essential to reducing long-term costs and exposure to volatile fossil fuel markets.

“Labour is calling for the immediate introduction of targeted energy credits, the extension of protections for households in arrears, and a clear plan to secure Ireland’s energy future. Working people deserve certainty, fairness and support. This Government must act now.”