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Departmental Priorities

Dáil Éireann Debate, Tuesday - 1 March 2022

Tuesday, 1 March 2022

Questions (104)

Pádraig O'Sullivan

Question:

104. Deputy Pádraig O'Sullivan asked the Minister for Public Expenditure and Reform the measures his Department is taking to mitigate pressures on the cost of living; and if he will make a statement on the matter. [11506/22]

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Written answers

In 2020 we saw a fall in prices as a result of the pandemic.  As we emerge from the pandemic and the economy recovers we are faced with a new set of challenges including rising energy prices and transitory supply issues which are causing prices to increase.

In this context Budget 2022, included a range of measures to support citizens with the rising cost of living.  

The measures introduced in Budget 2022 included:

- €5 per week increase in weekly Social Welfare payments;

- €3 per week increase in the Living Alone Allowance;

- €3 per week increase in the qualified child increase for children 12 and over and €2 for under 12;

- Increase in the threshold for the working family payment;

- €5 increase in the weekly rate of fuel allowance;

- Youth travel cards to provide discounted fares for people aged 19-23;

- A range of affordability measures in health including a lowering of the threshold for the Drug Payment Scheme to €100, free GP care for children aged six and seven, and measures to reduce the financial burden of hospital charges for children under 18; and

- A new funding stream that will be open to Childcare providers in return for a commitment that parents’ fees will not increase. Fees have been frozen since mid-2020.

However, the Government is acutely aware of the challenges still facing households, in particular relating to energy bills and especially for those at lower incomes.

In recognition of the challenge that households face at the moment with rising energy costs, in particular those on low incomes, we announced on 10 February a further package of measures, bringing to over €500 million the measures introduced post Budget day, targeted at mitigating the impact of these pressures. This package included:

- An increase in the energy credit to €200 including VAT, estimated to impact just over 2 million households.

- A lump sum payment of €125 to be paid in March to fuel allowance recipients.

- To reduce the burden on people returning to the workplace and other people using public transport, there will be a temporary reduction in fares of 20% on PSO public transport services from early May to the end of the year. This will impact approximately 800,000 daily users.

- The Drug Payment Scheme threshold will be further reduced to €80 per month, having been reduced to €100 per month in Budget 2022. This will benefit just over 70,000 recipients.

- The increase in the threshold for the working family payment announced on Budget Day will be brought forward from June to April.

- Reduced caps for multiple children on school transport fees to €500 per family post primary and €150 for primary school children for the next academic year. 

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