Energy Minister Eamon Ryan has announced that the Irish government will spend €15m this year, and next, on insulation to make houses warmer for those on low incomes.

This is expected to help householders to save up to 50% in their energy use.

According to the latest figures, approximately 40,000 homes in Ireland are not heated to a safe and comfortable standard.

Campaign groups say this is primarily due to low income and poor or energy inefficient housing standards.

Families Minister Mary Hanafin recently announced an 11% increase in the value of the fuel allowance, bringing it to €20 per week from next January.

While these measures will help those in greatest need over the coming months, the structural issues underlying energy inefficient housing urgently need to be addressed campaigners have insisted.

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Minister Ryan has doubled the amount the state gives to the Warmer Homes scheme for 2008 to €5m. He also secured an additional €5m in the Budget 09 for this scheme. ESB and Bord Gáis are matching this funding with a joint contribution of over €5m to bring the total for 08 and 09 to €15m overall.

He said: "This new money will make the homes of those on low income more comfortable and enable them to spend much less on fuel and electricity.

"I am pleased to be able to provide this funding to those in greatest need in the cold months ahead and am confident it will improve the lives of our elderly in particular who are the most vulnerable.

"I commend the companies involved for their contribution to this valuable scheme, which will improve the homes and lives of over 12,000 people."

Padraig McManus from ESB said: "We are delighted to contribute to this excellent scheme. ESB is providing €4m to help roll out home energy efficiency improvement to low income families."

Bord Gáis Chief Executive John Mullins said: "We recognise that more efficient use of energy will be the single most important measure in addressing energy affordability now and in the future.

"Bord Gáis is committed to assisting its customers to achieve energy savings, both through providing practical advice and now by investing €1.2 million in the Warmer Homes scheme, which will enable the most vulnerable customers to lower their fuel bills."

(PR/JM)