Written answers
Thursday, 11 May 2023
Department of Public Expenditure and Reform
Interest Rates
Fergus O'Dowd (Louth, Fine Gael)
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16. To ask the Minister for Public Expenditure and Reform the further measures his Department is considering in dealing with crippling rising interest rates which are greatly affecting thousands of households across the country; and if he will make a statement on the matter. [22102/23]
Paschal Donohoe (Dublin Central, Fine Gael)
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In recognition of the impact of high energy prices and the rising costs of living on individuals, households and businesses, Government has provided significant supports over the period since Budget 2022.
Most recently, Government announced a €1.3 billion package of measures in February this year. €800 million in taxation measures provided for the extension of the temporary reductions in the VAT rates on the supply of gas and electricity and for Tourism and Hospitality and for a phased restoration of the rates of excise on petrol, diesel and marked gas oil until end-October. The Temporary Business Energy Support Scheme was also extended and enhanced.
€500 million in targeted and temporary expenditure measures will provide supports for families with children, low income working families, carers, those on disability payments and pensioners. These measures include:
- A €200 lump sum to long-term social welfare recipients
- A €100 per child lump sum child benefit payment
- A one-off €100 increase in the Back to School Clothing and Footwear Allowance
- Reduced School Transport charges
- The waiver of State Exam fees for Junior and Leaving Certificate, and
- Completing the rollout of the Hot School Meals Programme to all DEIS primary schools
In addition, the €2.2 billion in Winter Cost of Living package for households provided additional temporary supports to ease the burden of rising costs of living over the winter period.
Together with cost of living measures introduced earlier in 2022, Government has introduced some €10 billion worth of measures which provide supports for households and individuals.
The Government's approach to the cost of living pressures has always sought to balance the particular challenges faced by business and households, particularly those households on lower and fixed incomes, and the need to protect the long-term sustainability of the public finances.
My colleagues and I remain conscious of the pressures faced by households due to rising interest rates and other cost of living pressures. My Department, alongside the Department of Finance, will continue to closely monitor economic developments and the impact on society as we progress through the year.
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