The Government is actively considering further interventions to give relief from inflation and the high cost of living.
It comes as the coalition’s already-agreed measure of subventing electricity bills by €100 risks being diminished by high inflation, which is forcing the cost of living debate to the centre of the political agenda.
Senior sources said on Wednesday that discussions are underway with consideration being given to higher energy credits, or reliefs from charges or fees set by the Government on the table.
Sources said there is recognition across the coalition that cost of living pressures have become more of a problem than had been envisaged at budget time. “Everyone agrees it’s the burning issue,” one source said. There is a “strong feeling we need to do more,” the source added.
Among other interventions being examined, Heather Humphreys, the Minister for Social Protection, has asked her officials to examine options for what can be done to give some relief to social welfare recipients, it is understood.
‘Under review’
The Minister for Public Expenditure, Michael McGrath, whose Department will have to approve any further spending, indicated more is being considered during an appearance at the Oireachtas finance committee today.
He said “many people across the country are really feeling the pressure of the inflation cycle that we’re experiencing at the moment. It is higher than was envisaged and it’s likely to remain higher for longer than was anticipated,” he said, adding that when the budget was drawn up in October, inflation averaging about 2.2 per cent across 2022 was anticipated. “It is now likely to be higher than that,” he said.
Mr McGrath pointed to a range of tax and welfare interventions made at budget time.
“We did make changes that I think will help. Does it go far enough? I think you can never go far enough at the moment given the level of inflation that is there … we are conscious of it,” he said, pointing to the electricity credit being brought forward currently, adding:
“We will continue to keep it under review because we know that people are feeling pressure at this time and the issue is actively being examined and kept under review”.
A Fine Gael source said that Tánaiste Leo Varadkar believes more needs to be done to help families with the cost of living and added: “We are working on options.”
“A more generous energy credit is one option and would be simple to do once the legislation is passed. Also it would benefit all households which is important.”
The source also identified the cost of healthcare and childcare as where the focus will be “in the medium term”.
