A new report from Ireland’s Economic and Social Research Institute (ESRI) says recent increases in energy prices hit low-income households harder than higher-income households. The ESRI finds that for poorer households, energy costs rise by a larger share of income, creating a disproportionate financial burden. While the Irish Government has introduced supports aimed at reducing the impact of higher energy prices, the ESRI concludes that these measures only offset part of the overall effect and do not remove it entirely.
The reports also note that some of the government’s assistance is delivered through measures that apply broadly, including tax reductions that benefit all households rather than targeting need. As a result, higher-income households are comparatively less affected, while lower-income households continue to face greater pressure from energy spending. Overall, the ESRI assessment characterises the distributional impact of energy price changes as uneven across income groups, with the greatest strain falling on those in the lowest income brackets.
