Budget 2024: Public Support Surges for Additional Energy Credits

In the wake of the price cuts announced by energy suppliers earlier this month, almost two-thirds of Irish people (64pc) are calling for at least one more energy credit for everyone to be factored into the upcoming 2024 Budget, while a further three in ten say only those who need it most should get the additional support.

Taxpayers are also calling on the Government to turn their attention to middle-income earners when it comes to income tax reductions, with over a third (35pc) stating that this group should benefit most from any cuts.

The latest instalment of the Taxback Taxpayer Pre-Budget 2024 Survey, which surveyed 2000 taxpayers nationwide delved into the opinions of the Irish public to discern how the general public feel about financial assistance measures that could be implemented in October’s fiscal policy for the year ahead.

Marian Ryan, Consumer Tax Manager with Taxback commented on the findings,

“A resounding 51pc of participants of the Taxback survey firmly advocated for a universal approach, asserting that everyone, regardless of their economic circumstances, should be granted a minimum of two additional energy credits within the upcoming budget. This points to a collective belief in the importance of equal access to energy relief from the escalating costs of energy. Affordable energy is a basic requirement for a healthy standard of living. From heating homes to cooking meals, energy accessibility is crucial for overall well-being”.

“Another cohort of society that has garnered significant public support for income tax reductions is the “squeezed middle”, with over one-third of respondents (35pc) stating that this demographic should receive the greatest benefits from the potential tax breaks.

Middle-income earners missed out on Government supports in last year’s budget that targeted low-income families meaning that those earning just above the pay threshold were left to fend for themselves. The results reflect the empathy of the public towards those who are in employment yet find themselves grappling with the financial challenges posed by rising living costs. For many of the “squeezed middle” income earners, wages have not increased in the past year in spite of the fact that everything costs more due to inflation”.

Energy Credits

Taxback report that there was a notable consensus among the general public that everyone in Ireland should be in receipt of at least one additional credit, with two-thirds of Irish people (64pc) voicing this opinion. The disparities in energy affordability are underscored by the Central Statistics Office’s (CSO) energy deprivation figures from 2022. The data shows that vulnerable groups including single parents, individuals dealing with illness or disability, and the unemployed, experienced significant challenges in keeping their homes adequately heated due to financial constraints.

Ms. Ryan added,

“It is resoundingly clear that the majority of people are depending on the provision of energy credits to be announced in the upcoming Budget. Alongside immediate relief in the form of energy credits, long-term strategies such as free energy upgrades for low-income households are needed so, as a nation, we can transition towards sustainable and equitable energy solutions”.

Income Tax Reduction:

A third (33pc) of respondents to the Taxback survey voiced their belief that lower-income earners should be the primary beneficiaries of income tax reductions, while a meagre 6pc indicated that higher-income earners should benefit the most due to paying higher taxes.

Ms. Ryan commented,

“The availability of adequate income is a pivotal factor in allowing individuals and families to plan for their future and the survey results emphasise that having work doesn’t always guarantee an escape from the cost-of-living crisis.

Rising housing costs, lack of accessible childcare, and inflation on grocery items are negatively impacting a growing number of working individuals and sadly, in-work poverty is a very real issue in our society”.

Ms. Ryan concluded,

“As Ireland approaches Budget 2024, the insights from this survey serve as a reminder of the varied needs and aspirations of the population, providing policymakers with valuable guidance in crafting policies that align with the broader goals of economic well-being and social progress”.