Holly Cairns
Question:50. Deputy Holly Cairns asked the Minister for Enterprise, Trade and Employment the steps he has taken to address food price inflation. [30760/23]
View answerThursday, 29 June 2023
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Written answers
The Government has been proactive in limiting the fallout from higher rates of inflation. A total of €12 billion – 4½ per cent of national income – has now been provided in direct relief to absorb some of the impact and ease the burden of inflation on households and businesses.
Budget 2023 included a €4.1 billion package to tackle the cost of living and contained a large range of measures to protect households from the rising cost of living, such as:
• Once-off fuel allowance payment of €400,
• Once-off payment of €500 to people receiving the Working Family Payment,
• Once-off double Child Benefit payment resulting in an extra €140 per child,
• Standard rate income tax band for a single person increased by €3,200, to €40,000 and to €49,000 for a married couple.
• Rent tax credit of €500 per year
• An increase in the small benefit exemption for employees from €500 to
€1,000.
Other measures introduced in response to increased energy costs have included: Electricity credit of €600 for all households to be paid in three instalments of
• Electricity credit of €600 for all households to be paid in three instalments of €200
• A reduction in the rate of VAT on gas and electricity from 13.5% to 9% extended until 28 February,
• Fuel allowance scheme expanded to increase eligibility,
• The Temporary Business Energy Support Scheme has been allocated €1.3 billion in funding across 2022 and 2023, to support business facing rising energy costs. This scheme will help minimise the pass-through of these rising energy cost to consumers.
These measures are intended to increase the value of people’s wages, in the face of ongoing cost of living pressures.
In May and again on 21 June, I met with grocery retailers where I received assurances that they will pass on the impact of any reductions in input costs on product prices to their customers.
At the 21 June meeting, I was advised that they have reduced the cost of quite a number of products and they will continue to monitor this.
On the 20 June 2023, Minister Coveney published the Competition and Consumer Protection Commission’s (CCPC) report, A High-level Analysis of the Irish Grocery Retail Sector .
The Report found that food inflation in Ireland has been the lowest in the EU in recent years and that changes in input costs may take time to be passed on to consumers.
I will continue to engage on this and will contact food retailers in August to seek an update. A meeting of the Retail Forum is scheduled for September.
The Government will keep the situation under close and active review, and we will continue to examine what measures are possible to manage the impact of rising cost of living for workers.