Dessie Ellis (Dublin North West, Sinn Fein) | Oireachtas source

The cost-of-living crisis has significant implications for all sections of society but disproportionately affects economically disadvantaged individuals and families who are already struggling to make ends meet. Escalating energy and food costs, increased mortgage rates and spiralling rents have contributed significantly to this ongoing crisis. Economically disadvantaged individuals are particularly vulnerable as they tend to bear the brunt of rising prices for essential goods and services. Low-income households in particular spend a higher proportion of their incomes on energy and food. Increasing these costs therefore impacts on their ability to maintain a decent standard of living.

Such households may be forced to cut back on essential items or even go without them altogether. Some families may struggle with inadequate nutrition or health problems due to an inability to afford nutritious food or medical care. The impact is not merely financial as it affects their overall quality of life. The repeated increases in the main lending rates by the ECB have resulted in exorbitant mortgage repayments for many people, with interest rates increasing by up to 10% for some households. These hikes will see some households pay up to an additional €5,700 in their annual mortgage costs. All variations of mortgages, whether tracker, variable or fixed rate, have all been greatly affected by these increases. The increases are causing financial strain. Insecurity about the future and concern among families about making ends meet is taking a toll on people's mental health.

Escalating rents also make it increasingly difficult for individuals to secure affordable accommodation. Renters are trapped in a cycle of unaffordable rents, which leaves them with little or no savings and perpetuates their economic vulnerability. Previous Government assistance has provided temporary relief by helping to cover certain expenses, such as the once-off payment towards certain energy costs, but these are only stopgap solutions. Realistic, long-term policies aimed at reducing energy costs and stabilising food prices are crucial and while this is not happening the cost-of-living crisis will continue to affect people's standard of living and their mental health.

Sinn Féin has called for the introduction of a targeted and temporary mortgage interest relief that would apply only to the principal dwelling and to new and existing mortgage agreements. It is time to give homeowners a break and this measure will go some way to alleviating the acute financial distress these rising interest rates are causing homeowners.

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