Energy Poverty Ireland: ESRI Report Highlights Affordability Crisis & Universal Credit Concerns

A new report from the Economic and Social Research Institute (ESRI) found that 14% of Irish households were unable to afford adequate warmth or pay their energy bills in full in 2024. The study also revealed that an additional €480 in annual income could lift households out of fuel poverty, at a cost of €370 million to the State, significantly less than the €575 million spent on universal electricity credits in 2024.

The ESRI report, published on Thursday, April 30, 2026, highlights the ongoing challenges faced by Irish households in affording essential energy services. These services include heating, lighting, cooking, and powering appliances. The findings come before the recent rise in energy prices stemming from the war in Iran, suggesting the situation may have worsened since the data was collected.

Energy Poverty Levels and Contributing Factors

According to the report, 14% of households experienced energy poverty in 2024, a figure lower than the 25% recorded during the 2008 financial crisis. However, when considering multiple measures of energy affordability, the ESRI found that 30% of households face some form of energy affordability challenge.

Energy poverty is driven by a combination of low disposable income, high energy costs, and poor housing quality. The ESRI emphasized the strong relationship between energy poverty and broader socio-economic issues such as income inequality and unemployment.

Targeted Support vs. Universal Credits

The ESRI research suggests that targeted supports are more cost-effective than universal energy credits. Providing an average of €480 per year to households in energy poverty would alleviate the issue for those affected, costing the State approximately €370 million annually. This is considerably less than the up to €575 million spent on universal electricity credits in 2024.

The report found that the most cost-effective supports are those targeting the least well off.

Economic and Social Research Institute

The findings have prompted criticism of the government’s reliance on universal energy credits, with the ESRI arguing they are a less efficient way to address energy poverty. The Tánaiste has not ruled out bringing back universal credits, despite the ESRI’s concerns.

Funding and Further Research

The ESRI research was funded by the Department of Climate, Energy and Environment. The institute also recommended developing a comprehensive monitoring system that incorporates multiple indicators to enhance policy effectiveness in addressing energy poverty.

The report underlines that households with lower incomes spend a much larger share of their income on fuel, highlighting where the greatest need lies.