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

The truth is that it will be through a combination of measures. Incomes will rise next year. I believe that in the main incomes will rise ahead of the rate of inflation next year. In real terms, people will make gains relative to the cost of living next year. The last 12 months have been really difficult for many people. Even though there was a whole range of cost-of-living measures, costing approximately €12 billion, we acknowledge that the full impact of inflation was not offset by those measures for everyone. However, there will be an opportunity, as we move to a lower, more normal inflation environment over the next 12 months and beyond, for people to make real gains in disposable income.

There will be changes in taxation to put more money back into pockets. There will be a core welfare package to try to improve the incomes of people who are on fixed incomes. We will also continue to examine what more we can do in areas such as childcare, education and healthcare costs to reduce the overall burden that people are facing in their day-to-day lives. It will be a matter of a combination of measures. There will hopefully also be the agreement of a new public service pay deal over the next number of months. It will therefore be a combination of pay, reducing the burden of tax, reducing charges and increasing people’s incomes through the decisions taken by the State.

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