Press release
Government announces new cost-of-living measures for families, businesses and the most vulnerable
From Department of the Taoiseach
Published on
Last updated on
From Department of the Taoiseach
Published on
Last updated on
The government is acutely aware of the effect that high energy prices and the cost of living are having on families, businesses and the most vulnerable.
In recognition of these ongoing challenges, the government has today agreed a new €1.2 billion package of measures to put money back into people’s pockets, help with the bills, and ensure there is no cliff-edge for the temporary measures already in place.
The Taoiseach said:
“We know the cost of living remains very high and that people are under pressure. This package is about helping families who are struggling with the cost of living, helping businesses with their energy costs, and helping those on fixed incomes like pensioners and people on social welfare including carers and people with disabilities.
“Families with children will receive a bonus Child Benefit payment of €100 per child in June, and there will be a once-off €100 increase in the Back to School Clothing and Footwear Allowance in July. Meanwhile the Hot School Meals programme will be extended to all DEIS primary schools from September, benefiting 64,500 children.
“A second lump sum of €200 will be paid in April to people on the Working Family Payment, lone parents, low-income families, carers, those on disability payments, and pensioners among others.
“We have made sure there is no cliff-edge on fuels and energy costs. Lower VAT and excise rates will continue to apply on gas, electricity, petrol, diesel and marked gas oil until October. This will help families, businesses, and anyone who drives a vehicle, in particular those who commute to work or travel long-distance. The next energy credit is also due in March, as announced previously.
“For business, we’ve made it easier to apply for TBESS to help with electricity and gas bills, and the level of relief has been increased to 50% of the cost of eligible energy bills. There will also be a new grant for businesses using LPG or kerosene. The special reduced 9% VAT rate for hospitality businesses will be extended from March to August.
“We’ve already brought in five permanent measures from the start of this year, including a 25% reduction in the cost of childcare, €12 more a week for pensioners, carers and people with disabilities, a further 80,000 elderly people eligible for the fuel allowance, lower income taxes benefiting 1.5 million people, and €500 back for every renter.
“Because we continue to manage the public finances responsibly, we can take these measures while ensuring we still have sufficient resources for the next Budget in the autumn.”
Tánaiste Micheál Martin said:
“This government remains committed to helping protect the most vulnerable, families and businesses from the rising cost of living caused primarily by Russia’s immoral and illegal invasion of Ukraine.
“Targeted welfare and education supports such as an additional €200 social welfare payment, an additional €100 child benefit and Back to School allowance, and an extended school hot meals scheme will further shield families from the impact of inflation, while businesses will benefit from an expanded TBESS scheme.
“This comes on top of a substantial package of supports in Budget 2023, and while energy inflation shows signs of moderating, it is important people and workers don’t face a cliff edge on fuel and energy costs in the coming months ahead of another Budget in October.”
Minister Eamon Ryan said:
“The brutal invasion of Ukraine has caused prices to increase across the board but it’s clear that some people are finding it extremely difficult right now. It is only right that children, families and those relying on social welfare payments should be the focus of this latest round of supports. The government had promised it would help people to weather these rising costs and that is exactly what we are doing.
“I also welcome the extension of the temporary reduction in VAT on tourism and hospitality until the end of August, which will give those businesses a significant boost during the coming holiday season. The extension of the VAT reduction on the supply of gas and electricity until the end of October will also offer much needed help to families in meeting their energy bills.”
A €470 million package of measures to help social protection recipients from April to July, for:
Today’s decision comes on top of the extensive assistance provided by Government in Budget 2023 worth €4.1 billion.
Many of the measures announced as part of Budget 2023 are only now, or will shortly, come into effect.
These include the payment of the fourth Electricity Credit of €200 to every household next month, the abolition of inpatient hospital charges in April, and the introduction of free school books and reduced costs for further and higher education from September.
Other measures the government has taken came into effect only recently, including double social welfare payments and the Christmas Bonus, the Fuel Allowance lump sum payments and expansion in the number of recipients, the increase in core social welfare and pension rates, income tax reductions, the rent tax credit, the increase in the minimum wage, and reductions in childcare costs.
The government’s resources are not limitless and it is important that we continue to manage our public finances carefully. This means making sure the actions we take are affordable, sustainable, and, to the greatest extent possible, targeted at those who need them most.
These decisions taken today, along with those taken as part of Budget 2023, will provide certainty in the months to come and help alleviate the real worries of many families and businesses.