Dáil Éireann Debate, Tuesday - 1 March 2022
86. Deputy John Lahart asked the Minister for Public Expenditure and Reform if the recently announced package on the cost of living will require any revised estimates to be introduced; and if he will make a statement on the matter. [11478/22]
View answerIn recognition of the challenge that households are facing at the moment, in particular those on low incomes, a suite of measures was announced on February 10th to assist citizens with rising costs of living. This package sought to balance targeting the main underlying problem of higher energy prices with the need to operate with the fiscal framework set out in the Summer Economic Statement. This package, with the energy credit of €100 per household announced late last year, has a value of over half a billion euro and will build on the range of supports introduced in Budget 2022 to address costs of living. The package comprises:
- A lump sum payment of €125 to recipients of Fuel Allowance to be paid in March;
- An increase in the Energy Credit payment announced in December from €100 exclusive of VAT to €200 inclusive of VAT;
- Applying the Budget 2022 increase of €10 in the weekly income threshold for the Working Family Payment from April rather than June;
- Further reducing the Drugs Payment Scheme threshold to €80 per month, having been reduced to €100 per month in Budget 2022;
- Reducing the maximum annual School Transport charge to €150 per family at primary level and €500 per family at post-primary level for the next academic year;
- A 20% reduction in PSO Public Transport fares from May until the end of 2022.
The Energy Credit is the main anticipated cost among these measures, with a cost of up to €400 million set out in the Electricity Costs (Domestic Electricity Accounts) Emergency Measures Bill 2022. This legislation provides for the establishment of a scheme to make a payment to domestic electricity accounts, on an exceptional basis due to the global rise in energy prices. Given that this cost is considerable in relation to the original Estimate for the Department of Environment, Climate and Communications, a Supplementary Estimate will be required for Vote 29 to provide for this which I will present to Dáil Éireann for consideration and agreement following approval by Government.
Further Supplementary Estimates may be required later this year to provide for the other measures contained in the package, which fall under the remits of the Departments of Social Protection; Health, Transport and Education, to the extent that these costs cannot be met within the existing allocations provided.
