Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

The coming months will be difficult for a lot of low and middle-income households as a result of the 35 energy increases introduced this year, with many more expected. The annual bill for heating a home can cost between €400 and €500 more than it was this time last year. Electricity prices have risen by 21%, gas by 14% and home heating oil by 46%. The Minister of State and his party want those prices increased even further, which will make those households even poorer, in the hope they will find magic money under the mattress in order that they can switch to air-to-water or underground heating.

That is not the reality. It is not what is happening in real life. We need to respond to this unprecedented increase in the cost of heating homes and the way to do so is to do what other countries have done. Spain has reduced VAT on electricity bills dramatically, by 11%, until the end of the year. The British Labour Party is trying to convince the Conservative Party to institute a 0% VAT rate for household energy bills. The Czech Republic has already passed legislation, and is in discussions with the European Commission, regarding a 0% VAT rate for household energy bills over the winter period. The Government should do the same. It should have these households' backs and it should be on the side of these families. It could reduce the VAT rate to 0% over the winter months, thereby reducing these household bills by 12%. Other options are also available if the Commission does not approve a change in the VAT rate. A refund could be provided. As recently as last month, the Commission said that this is a tool that member states have used. Instead of pushing additional costs onto families, let us do the right thing. Let us have their backs and take the pressure off them this winter.

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