Last week, the Minister for Public Expenditure and Reform, Michael McGrath and the Minister for Finance, Paschal Donohoe jointly announced a package of measures with an estimated cost of €505 million to tackle the cost of living. The announcement comes amidst increasing pressure on the Government to take urgent steps to mitigate the impact of rising inflation.
The package includes:
- An energy credit worth €200 (including VAT) to be paid in April to an estimated two million households.
- A 20 percent reduction in public transport fares from April to the end of the year impacting an estimated 800,000 individuals.
- A lump sum payment of €125 on the fuel allowance will be paid in March to 390,000 individuals.
- The Drug Payment Scheme will be reduced from €100 to €80 benefitting an estimated 70,000 individuals.
- The Working Family Payment increase will be brought forward to 1 April 2022.
- The caps on school transport fees are to be reduced to €500 per family for secondary school students and €150 for primary school students.
Prior to the announcement, the Institute wrote a letter to Minister McGrath recommending a reduction VAT on energy costs such as home heating oil, gas and electricity. The Institute view is that a VAT rate reduction should be kept on the table to reduce energy costs.
For more, read the full press release.
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