The tax will increase the cost of gas by €1.40 per month, while oil users will see an increase of €1.50 a month.

Micheál Martin said the Government has cut excise, increased the fuel allowance and had given €200 towards energy bills and added that the Government could not deal with the energy crisis on a “week to week basis or in terms of one tax alone”.

Mr Martin said the issue needed to be discussed with stakeholders and examine welfare, tax and climate.

He was responding to Sinn Féin leader Mary Lou McDonald, who called for the planned Carbon Tax hike to be scrapped, saying people were living in “dread, panic and fear” due to rising energy bills.

Meanwhile, the Taoiseach urged politicians to give the next generation “some quality of life” but warned that they face a horrendous future if people remain in denial about climate change.

Mr Martin said this is why the legislation around carbon tax increases must be kept in place and he believes it will be a huge challenge to reach the 2030 emissions targets.

He was responding to the Labour Leader Ivana Bacik, who said emissions in Ireland are heading in the wrong direction, with an over reliance on imported gas. This will get worse if eight planned gas-fuelled power stations are built, she said.