Micheál Martin (Cork South-Central, Fianna Fail)

May I first of all say that I think the CSO should be the standard statistical body that we should adhere to for any analysis and comment, and pin those on it, because there are all sorts of groups coming forward every now and again with indeterminate statistics? There is no question but that inflation has been a very significant issue over the last number of years. In fact, it was close to 10% following the pandemic and the invasion of Ukraine by Russia. It has eased considerably since then but, of course, prices are at that elevated level. Real wages are now increasing by about 3.5%, if we take out inflation. That said, food prices are a significant pressure on many families.

However, the Government has responded. We have put in permanent measures that have eased the cost of living for many families. The free schoolbooks scheme, for example, was a very significant measure that we took, and it is permanent. Free hot school meals are very significant. Some 26% of families now benefit from the fuel allowance, which is a very significant enhancement. We targeted supports to the child support payment. For those over 12 years of age, it went up by €16, and by €8 for those under 12. That helps many lower-income families but many middle-class households with children will also benefit. The working family payment threshold increased by €60 a week, which allows more families to qualify and get more support. There was an expansion of the back-to-school clothing and footwear payment to include younger children of two and three years old. Of course, we have the pension auto-enrolment scheme, which is a very significant scheme that will benefit well over 700,000 workers in time.

These are more permanent, sustainable measures that will improve working people's lives and quality of life into the future. We targeted our resources in this budget. We also extended the rent tax credit, which has been increased over recent years. We have extended the reduction in the VAT rate on electricity and kept it at 9% for the next number of years.

We will continue to do what we can in terms of supporting families. The budget is not as the Deputy has described. That is just a cheap headline grabber. The budget is very significant in terms of the public expenditure and the increases in services for disability, and for education in terms of capitation grants, with €50 for primary schools. These are very significant interventions. One has to make choices in the budget. I recall the Labour Party consistently criticising the Government's tax packages over the past five years and now when there is not a tax package on personal income, it turns around, reverses and criticises us for not including one.

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