Brendan Smith (Cavan-Monaghan, Fianna Fail)
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255. To ask the Minister for Public Expenditure and Reform if additional supports will be introduced to support all the families that are most affected by recent increases in the cost of living; and if he will make a statement on the matter. [19182/22]

Michael McGrath (Cork South Central, Fianna Fail)
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Government is acutely aware of the challenges still facing households, especially those at lower incomes from increased costs of living. In 2020 we saw a fall in prices as a result of the pandemic. As we emerge from the pandemic and the economy recovers we are faced with a new set of challenges including rising energy prices and transitory supply issues which are causing prices to increase, exacerbated by the war in Ukraine.

In recognition of the challenge that households face at the moment with rising energy costs, in particular those on low incomes, Government announced on 10 February a package of measures, bringing to over €500 million the measures introduced post Budget day, targeted at mitigating the impact of cost of living pressures. This package included:

- An increase in the energy credit to €200 including VAT, estimated to impact just over 2 million households;

- A lump sum payment of €125 to be paid in March to fuel allowance recipients;

- To reduce the burden on people returning to the workplace and other people using public transport, there will be a temporary reduction in fares of 20% on PSO public transport services from early May to the end of the year. This will impact approximately 800,000 daily users;

- The Drug Payment Scheme threshold will be further reduced to €80 per month, having been reduced to €100 per month in Budget 2022. This will benefit just over 70,000 recipients;

- The increase in the threshold for the working family payment announced on Budget Day will be brought forward from June to April; and

- Reduced caps for multiple children on school transport fees to €500 per family post primary and €150 for primary school children for the next academic year.

This package builds on the range of measures introduced in Budget 2022 to help families with affordability issues, including Social Protection measures totalling over half a billion euro, health affordability measures and a funding stream for childcare providers. Budget 2022 also contained an income tax package of just over half a billion.

In March, in light of the continued high fuel prices, an emergency support measure for licensed hauliers provides a payment of €100 per week per heavy goods vehicle in light of the important role played by the sector in ensuring goods are available to families and businesses. The Department of Finance introduced a temporary reduction in the excise duties charged on petrol, diesel and marked gas oil to 31st August at an estimated revenue foregone cost of €320m.

The aim of the Cost of Living package was to provide temporary targeted measures to assist households on lower incomes and other families who are facing increased energy bills. This package sought to balance targeting the main underlying problem of higher energy prices with the need to operate with the fiscal framework set out in the Summer Economic Statement. Taken with the Budget 2022 measures and the excise duty cut, Government has committed significant resources to address cost of living issues.