14% of Irish Households Unable to Afford Adequate Warmth or Energy Bills in 2024, ESRI Reports
A 2024 ESRI report reveals 14% of Irish households cannot afford adequate warmth or energy bills, a decrease from 25% in 2008. Energy poverty, driven by low income and high costs, affects 30% when multiple factors are considered. Targeted support of €370 million annually is deemed more cost-effective than universal credits.
A new report from the Economic and Social Research Institute (ESRI) indicates that 14% of Irish households in 2024 reported an inability to afford adequate warmth or fully pay their energy bills. This figure represents a significant decrease compared to the 25% recorded during the financial crisis that commenced in 2008.
The ESRI defines energy poverty as the inability of households to afford essential services, including sufficient home heating, lighting, cooking, or powering appliances. This condition is primarily influenced by a combination of low disposable income, elevated energy costs, and substandard housing. It is also closely linked to income inequality, unemployment, and broader deprivation.
When multiple metrics of energy affordability are considered, the report reveals that 30% of households face some degree of energy affordability challenge. The research, conducted prior to the recent surge in energy prices attributed to the conflict in Iran, suggests that the most effective support measures are those specifically targeting the most disadvantaged households.
To alleviate fuel poverty, affected individuals would require an average of €480 in additional annual income, amounting to a total state expenditure of €370 million per year. This cost is considerably lower than the €575 million spent by the government in 2024 on universal electricity credits. The Department of Climate, Energy and Environment funded the ESRI research.