Dáil debates

Thursday, 16 February 2023

Ceisteanna ó Cheannairí - Leaders' Questions

 

12:00 pm

The point I will make is that, from the beginning of 2022, more than €8 billion has been allocated to specific tax and expenditure measures to try to help people. We are going through a cost-of-living crisis. There were initial inflationary pressures coming out of Covid because of supply chain issues. Everyone accepts that these pressures were very much exacerbated by the war in Ukraine and the energy crisis that unfolded. The Government took very significant decisions on that basis. In fact, the ESRI has found that the once-off measures we introduced as part of budget 2023 will insulate most households from rising energy prices this winter. The Irish Fiscal Advisory Council reckoned that we got the balance right between providing relief to households and firms and not making the inflationary situation worse. We understand, of course, that some measures are due to expire at the end of this month. The Government will be holding a series of meetings in the coming days to ensure that there will not be a cliff edge and that we will continue to support families who continue to be under pressure because of the cost-of-living situation.

Inflation appears to have peaked and is now trending downwards. That has to be factored in. The budget in 2023 included a total package of €11 billion. Some €4 billion of that comprised once-off measures. Some of it is still feeding through. A household in receipt of fuel allowance this winter will receive a total benefit of almost €2,000, made up of a €924 fuel allowance payment for the winter of 2022-23, a €400 fuel allowance lump sum and €600 of electricity credits. It is a significant measure by any yardstick.

We paid eight separate cost-of-living lump sum payments throughout October, November and December last year: a €200 living alone allowance lump sum; a €400 fuel allowance; a €500 working family payment lump sum; a €500 carer's support grant; a €500 disability support grant; a double child benefit payment; a double welfare payment in October and a further double payment as part of the Christmas bonus. In addition, the 25% reduction in childcare costs has put €2,000 and more back in pockets of parents. The cut in the universal social charge, USC, means that workers on the minimum wage will now remain outside of top rates of USC. We have introduced a new rent tax credit of €500 per year. All in-hospital patient charges will be abolished. We have extended and will extend coverage for free GP care and we will do much more. We will take decisions in the coming days to deal with the cliff-edge issue to make sure we can continue to support people who are under pressure.

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