New cost of living supports to be considered at meeting of Ministers

over 3 years in The Irish Times

Ministers will meet on Monday evening to discuss a new package aimed at helping households with the rising cost of living.
The three coalition leaders will meet with the Minister for Public Expenditure Michael McGrath and Minister for Finance Paschal Donohoe at 5pm to finalise measures to help address the rising cost of fuel, food and energy.
A number of options are being looked at after the Government said the planned increase in the carbon tax in May will be offset.
One option involves scrapping the public service obligation levy which is placed on energy bills. It is charged to all electricity customers with suppliers collecting the levy through bills.
The levy is €4.30 excluding VAT per month which equates to €58.57 per year inclusive of VAT.
The Government has estimated that the carbon tax increases due at the end of April on home heating would amount to rises of no more than €1.40 a month on a gas bill and €1.50 a month on home heating oil.
Other options being explored include mandatory time-of-day-pricing for electricity to encourage people to change their energy use to times when the costs would be cheaper.
There is particular focus in Government on home heating oil, the price of which has rocketed in recent months.
The package of measures, if agreed, will likely be brought to Cabinet this Wednesday.
There has also been speculation about the expansion of the eligibility of the fuel allowance.
Taoiseach Micheál Martin previously said the measures will be “targeted” to support families on low incomes.
Work is also underway on an information campaign which will advise the public on how changes in household behaviour can cut the cost of bills.
“Today the three Government party leaders are meeting to discuss the cost of living crisis.
“I am urging them to use this opportunity to plan for an urgent emergency budget that supports workers and families. Right now they need action, not more talk.”
He called on the Government to remove excise duty from home heating oil and to negotiate with the European Commission to reduce VAT on domestic energy bills.
He also said that cost of living cash payments should be introduced and the fuel allowance should be extended by six weeks, while social welfare rates should be increased for the most vulnerable in response to inflation.

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