Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

Budget 2022 included a number of measures to support citizens faced with increased costs of living. The Government is acutely aware, however, of the challenges still facing many households, in particular relating to energy bills and especially for those on lower incomes. In response to previous questions, I set out a number of measures the Government has brought forward. In February, there was a package of more than €500 million, which continues to be implemented, including the energy credit of €200 inclusive of VAT. The Government has also placed an emphasis on trying to reduce the costs individuals and families face, which is why, for example, the reduction in the drugs payment scheme threshold to €80, benefiting more than 70,000 families monthly, is a very important measure. In addition, there has been a reduction in the school transport fees families face, an important measure that was welcomed by many, and a reduction in public transport fares, benefiting about 800,000 people. That has been implemented in the Deputy's and my city and county of Cork and I think it is to be implemented in Dublin as well in May. That measure will certainly help and make a difference.

Of course, much of the focus in respect of the cost of living pressures has been on the area of fuel and we have done our best as a Government to make progress on that issue while having to comply with the constraints we are acting under, such as the energy tax directive, a European directive with which we must comply regarding minimum levels of taxation that must apply to diesel.

There are also constraints in respect of VAT. We have made changes in that regard but these must be consistent with EU law and the Government has gone as far as it can at this point with those measures. We have introduced a range of measures we believe will help, although we are not for a moment suggesting they go all the way or fully offset the costs people are facing. Unfortunately, the tragic war in Ukraine imposes a cost on all of us across society. The Government has done its best to respond but we accept we cannot fully offset the additional costs people are facing.

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