Parents, pensioners and other social welfare recipients are the big winners in the cost of living package unveiled by the Government on Tuesday afternoon.
The total value of the latest cash giveaway is €1.3billion and Taoiseach Leo Varadkar said that this will be the “last intervention this side of the Budget” in October.
However, on the downside, the series of €200 energy credits for all households in the country will end next month, but may be reconsidered next winter.
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Mr Varadkar said: “As everyone knows, we’re experiencing a major cost of living crisis, both in Ireland and globally.
“A lot of people are struggling to make ends meet and businesses are grappling with rising costs.
“Because of the strength of our economy and the health of our public finances, the Government has been able to respond dynamically to help people, families, businesses and farmers to manage rising costs over the last year.”
He added: “Today, the Government agreed a further intervention aimed at helping families and businesses to get through the Spring and Summer.
“It is more targeted than previously, but there are universal measures as well.”
Social welfare giveaways will account for €470million of the €1.3billion, with tax measures, including the extension of the hospitality special 9% VAT rate, making up the rest.
There will be a €200 bonus welfare payment doled out to all those in receipt of long-term benefits in April, including pensioners, carers, disabled and lone parents.
All parents will receive a €100 bump for every child in the form of a childrens’ allowance bonus, along with another €100 as part of the back to school clothing and footwear allowance scheme.
And there will be a further saving with the news that the fees for Leaving cert and Junior Cert exams, €116 and €109, have been waived again this year.
These payments will kick-in in June.
Motorists have escaped the taxman for now, but there will be a phased clawback of the excise duties discounts introduced last October from June, with the total 15c for petrol and 20c for diesel reductions gone by October.
Tánaiste Micheál Martin claimed that the Government’s emergency approach to Covid had served the Government well in tackling the cost of living crisis too.
He said: “Time and time again as three leaders and as a government I think we have demonstrated time and time again that in the face of extraordinary difficulties and challenges we will make significant interventions to protect our citizens, our society and our economy.
“This approach got us through Covid and ensured a strong economic recovery when we emerged from restrictions.
“It informed our response to the unprecedented cost of living crisis.”
Finance Minister, Michael McGrath, said that it was not possible to help everybody in this package.
He said: “It is a matter of judgement, these are not easy calls to make.
“We recognise that people are under pressure, we have sought to target resources in the best way that we possibly can.
“But we are significantly easing the ending of the various tax measures because we recognise the impact on people’s bills, on the costs at the pumps and forecourts would be really, really onerous if the Government did not step in and provide more money.
“I think it’s really important to underline that point, the Government has to provide more money to extend these measures.”
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