Dáil Éireann Debate, Thursday - 8 September 2022
444. Deputy Richard O'Donoghue asked the Minister for Public Expenditure and Reform if discussions are expected on the actions the Government will take to ease the burden on middle-class families who are struggling to put food on the table and to pay their energy bills, along with other unforeseen daily costs; and if he will make a statement on the matter. [42389/22]
Amharc ar fhreagraAs the economy recovers from the impacts of the pandemic we are encountering new, and significant, challenges from rising energy prices and global supply chain issues. These are exacerbated by the war in Ukraine.
The Government is acutely aware of the challenge posed to many households by the rising costs of living, notably in relation to energy bills and particularly for those on lower incomes. While the Government cannot fully insulate all from the impact of rising prices, significant resources have been provided to protect those that may be struggling due to price pressures. Budget 2022 set out a €1.2 billion package of expenditure measures to support citizens across a range of sectors with cost of living pressures and also contained an income tax package of just over half a billion euro.
Since then, a further €1.3 billion has been provided to put in place additional expenditure supports for citizens and businesses with a focus on alleviating the impact of rising energy prices. This includes the Electricity Credit for all domestic account holders of €200, a 20% reduction in public transport fares and additional fuel allowance payments. Further to this, the Department of Finance introduced temporary reductions in the excise duties charged on petrol, diesel and marked gas oil and reduced the rate of VAT on the supply of gas and electricity. These are real and tangible measures.
In implementing these policies, Government has sought to balance a number of considerations. In the context of increased energy costs driving inflation, several measures have been directed at cushioning the burden of higher fuel and electricity costs on households. To ensure swift support to help lower income households experiencing immediate difficulties, measures were developed to address other areas of the household balance sheet, so that those most in need could receive important assistance in a timely manner.
In the lead up to Budget 2023, Government is committed to doing its part and will continue to assist citizens and businesses in the face of a rising cost of living. We will seek to ease the burden for lower and middle-income families who are facing difficulties. Discussions are now underway as part of the estimates process to bring forward targeted, impactful measures capable of timely implementation. A comprehensive package will be announced in the coming weeks as part of Budget 2023.
