Money ministers Paschal Donohoe and Michael McGrath unveiled a €500million cost of living package that will give every home in the country €200 off energy bills next month, among other measures.
It is the main plank of their cost of living plan, which will cost €505million, that they hope will help soften the blow of the soaring costs of living for ordinary households.
The plan will also see a 20% to all public transport fares to help commuters, our older citizens will have peace of mind with an extra €125 in fuel allowance and the threshold for qualification for the Drug Payment Scheme will fall to below €100.
The weekly Working Family Payment will be increased by €10 and there will be a reduced cap in the School Transport Scheme.
It comes following a taxation and welfare package revealed in Budget 2022 last October worth €1billion.
But the latest effort has already been dismissed by the opposition for not going far enough.
Labour leader, Alan Kelly, said it should have been at least €1billion splashed out and he predicted the Government would be back in the same position again in a couple of months.
And Sinn Féin finance spokesman, Pearse Doherty, said the package only “scratched the surface” and he said that it showed the Government is “completely out of touch.”
The plan was unveiled in Government Buildings last night by Minister for Finance, Paschal Donohoe, and Minister for Public Expenditure, Michael McGrath.
It came after an emergency meeting of the Cabinet’s special economic subcommittee of select senior ministers, chaired by Tánaiste and Minister for Enterprise, Leo Varadkar.
Speaking at the launch of the cost of living package, Mr Donohoe said: “The rate of inflation that we have seen in the past few months has exceeded our expectations, mainly because of higher energy prices.
“While we expect the inflation rate to moderate from the second quarter of this year, it is nonetheless appropriate to respond to the increase in prices and today we are doing this.
“When taken in conjunction with the measures announced already, the Government package amounts to €505 million, a significant change.”
Minister for Public Expenditure added that the Government had acted because they are “acutely aware” of the “challenges” everyone is facing.
However, Labour leader, Alan Kelly, said the package was “not enough” to realistically address the rising costs people are facing.
He said: “I won’t just dismiss it, but it’s not going to go far enough.
“I predict the government will be back at this in a couple of months.”
Mr Kelly said that if he was in government he would introduce a minimum wage increase and a freeze on rent.
Mr Kelly added: “Rent is absolutely immoral at this stage.”
Sinn Féin’s Mr Doherty said the Government had its “head in the sand” over the cost of living.
He said: “They simply don’t get it, they don’t understand the pressure that families and workers are under.
“With all the recent talk from Government Ministers, including the Tánaiste, it is clear that they still do not get it.
“They do not get where ordinary people are and they do not understand the fact that rents are spiralling out of control.
“In my county there was a 24% increase and across the State there was an average 10% increase.
“The Government does not understand the impact this is having on those on low and middle incomes.
“The Tánaiste talks about a package in the region of €400 million but that will not scratch the surface of what needs to happen.”
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